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(logo)
Northern Funds
MONEY MARKET FUNDS MONEY MARKET FUND U.S. GOVERNMENT
MONEY MARKET FUND U.S. GOVERNMENT SELECT MONEY MARKET FUND MUNICIPAL MONEY
MARKET FUND CALIFORNIA MUNICIPAL MONEY MARKET FUND FIXED INCOME FUNDS
U.S. GOVERNMENT FUND INTERMEDIATE TAX-EXEMPT FUND FLORIDA INTERMEDIATE
TAX-EXEMPT FUND FIXED INCOME FUND TAX-EXEMPT FUND CALIFORNIA TAX-EXEMPT
FUND INTERNATIONAL FIXED INCOME FUND EQUITY FUNDS INCOME EQUITY FUND
STOCK INDEX FUND GROWTH EQUITY FUND SELECT EQUITY FUND MID CAP GROWTH
FUND SMALL CAP FUND INTERNATIONAL GROWTH EQUITY FUND INTERNATIONAL
SELECT EQUITY FUND TECHNOLOGY FUND
SEMI-ANNUAL REPORT
September 30, 1998
NORTHERN FUNDS Semi-Annual Report
- --------------------
TABLE OF CONTENTS
PAGE
Abbreviations and Other Information.............................2
Money Market Funds
Statements of Assets and Liabilities .........................3
Statements of Operations .................................... 4
Statements of Changes in Net Assets ......................... 5
Financial Highlights ........................................ 7
Schedules of Investments
Money Market Fund........................................ 11
U.S. Government Money Market Fund........................ 15
U.S. Government Select Money Market Fund................. 16
Municipal Money Market Fund.............................. 17
California Municipal Money Market Fund................... 29
Fixed Income Funds
Statements of Assets and Liabilities ........................32
Statements of Operations ................................... 33
Statements of Changes in Net Assets ........................ 34
Financial Highlights ....................................... 36
Schedules of Investments
U.S. Government Fund..................................... 41
Intermediate Tax-Exempt Fund............................. 42
Florida Intermediate Tax-Exempt Fund..................... 47
Fixed Income Fund........................................ 49
Tax-Exempt Fund.......................................... 51
California Tax-Exempt Fund............................... 55
International Fixed Income Fund.......................... 58
Equity Funds
Statements of Assets and Liabilities ....................... 60
Statements of Operations ................................... 61
Statements of Changes in Net Assets ........................ 62
Financial Highlights ....................................... 64
Schedules of Investments
Income Equity Fund....................................... 70
Stock Index Fund......................................... 73
Growth Equity Fund....................................... 81
Select Equity Fund....................................... 84
Mid Cap Growth Fund.......................................86
Small Cap Fund........................................... 88
International Growth Equity Fund........................ 106
International Select Equity Fund........................ 108
Technology Fund......................................... 110
Notes to the Financial Statements............................ 112
<PAGE>
- --------------------
ABBREVIATIONS AND
OTHER INFORMATION
With respect to the Schedules of Investments, the percentage shown for each
investment category reflects the value of investments in that category as a
percentage of total net assets.
Interest rates represent either the stated coupon rate, annualized yield on date
of purchase for discounted notes, or, for floating rate securities, the current
reset rate.
Prerefunding is a procedure in which a bond issuer floats a second bond in order
to pay off the first bond at the first call date. The proceeds from the sale of
the second bond are safely invested, usually in Treasury securities, that will
mature at the first call date of the first bond issue. Those first bonds are
said to be prerefunded after this operation has taken place.
Maturity dates represent the stated
date on the security, the next interest reset date or next puttable dates for
floating rate securities or the prerefunded date for these types of securities.
EXPLANATION OF ABBREVIATIONS
USED THROUGHOUT THE
SCHEDULES OF INVESTMENTS
ADP Automated Data Processing
ADR American Depository Receipt
AMBAC American Municipal Bond
Assurance Corp.
AMT Alternative Minimum Tax
BAN Bond Anticipation Note
BTP Banker's Trust Partnership
COLLD. Collateralized
COP Certificate of Participation
CP Commercial Paper
DECS Dividend Enhanced Convertible
Stock
FFCB Federal Farm Credit Bank
FGIC Financial Guaranty
Insurance Corp.
FHA Federal Housing
Authority
FHLB Federal Home Loan Bank
FHLMC Freddie Mac
FMC Fidelity Mortgage Corp.
FNMA Fannie Mae
FRN Floating Rate Note
FSA Financial Security Assurance
G.O. General Obligation
GNMA Government National
Mortgage Association
GTD. Guaranteed
HDA Housing Development Authority
HFA Housing Finance Authority
HUD Housing and Urban
Development
I.O. Interest Only Stripped Security
IDA Industrial Development
Authority
IDR Industrial Development Revenue
LOC Letter of Credit
MBIA Municipal Bond Insurance
Association
MTN Medium Term Note
NYS New York Shares
P-FLOATS Puttable Floating Rate Security
PCR Pollution Control Revenue
PFA Public Finance Authority
PRIDES Preferred Redeemable Increased
Dividend Securities
PRSV Preservation Project
PSF Permanent School Fund
RAN Revenue Anticipation Note
REMIC Real Estate Mortgage
Investment Conduit
SFM Single Family Mortgage
SLMA SLM Holding Corp.
S.O. Special Obligation
SOC GEN Societe Generale
STRYPES Structured Yield Product
Exchangeable for Stock
TOB Tender Option Bond
TOCR Tender Option Custodial Receipt
TRACES Treasury-Backed Automatically
Convertible Equity Securities
TRAN Tax and Revenue
Anticipation Note
TRB Tax Revenue Bond
VRDN Variable Rate Demand Note
<F1> Non-Income Producing
Security
-----------------
NOT FDIC-INSURED
-----------------
May lose value
No bank guarantee
-----------------
Northern FundsR are not insured or guaranteed by the U.S. government, nor can
there be any assurance that the money market funds will be able to maintain a
stable net asset value of $1.00 per share.
Shares of Northern Funds are distributed by an independent third party, Sunstone
Distribution Services, LLC, and sold by The Northern Trust Company and its bank
affiliates.
NORTHERN FUNDS Semi-Annual Report
- --------------------
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1998 (UNAUDITED)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S.
U.S. GOV'T. CALIFORNIA
GOV'T. SELECT MUNICIPAL MUNICIPAL
MONEY MONEY MONEY MONEY MONEY
MARKET MARKET MARKET MARKET MARKET
AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA FUND FUND FUND FUND FUND
- --------------------------------------------- ---------- ---------- ---------- ---------- ----------
<C> <C> <C> <C> <C>
ASSETS:
Investments, at amortized cost $3,756,582 $328,743 $322,433 $1,964,240 $244,914
Repurchase agreements, at cost which
approximates market value - 100,000 - - -
Cash - - - - 66
Income receivable 19,587 1,432 919 12,741 1,837
Receivable for fund shares sold 58,717 436 - 843 173
Receivable for securities sold 100 - - 6,055 970
Receivable from Adviser 37 5 5 18 4
Deferred organization costs, net of
accumulated amortization 14 5 5 16 4
Prepaid and other assets 63 20 25 43 9
- ------------------------------------------------------------------------------------------------------------------------------
Total Assets 3,835,100 430,641 323,387 1,983,956 247,977
- ------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Due to Custodian 276 - - 34 -
Dividends payable 15,568 1,872 1,313 5,111 611
Payable for fund shares redeemed - - 90 12,698 5,180
Payable for securities purchased - - - 3,572 5,031
Accrued investment advisory fees 247 29 21 129 16
Accrued administration fees 267 28 18 160 19
Accrued transfer agent fees 62 7 5 32 4
Accrued custody and accounting fees - 1 2 6 -
Accrued registration fees and other liabilities 113 27 15 58 19
- ------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 16,533 1,964 1,464 21,800 10,880
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets $3,818,567 $428,677 $321,923 $1,962,156 $237,097
==============================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $3,818,449 $428,646 $321,909 $1,961,833 $237,085
Accumulated undistributed net
investment income 101 27 14 180 13
Accumulated undistributed
net realized gains (losses) 17 4 - 143 (1)
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets $3,818,567 $428,677 $321,923 $1,962,156 $237,097
==============================================================================================================================
SHARES OUTSTANDING
($.0001 PAR VALUE, UNLIMITED AUTHORIZATION) 3,818,544 428,673 321,922 1,961,942 237,098
NET ASSET VALUE,
REDEMPTION AND OFFERING PRICE PER SHARE $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
<PAGE>
- ---------------------
STATEMENTS OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1998 (UNAUDITED)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S.
U.S. GOV'T. CALIFORNIA
GOV'T. SELECT MUNICIPAL MUNICIPAL
MONEY MONEY MONEY MONEY MONEY
MARKET MARKET MARKET MARKET MARKET
AMOUNTS IN THOUSANDS FUND FUND FUND FUND FUND
---------- ---------- ---------- ---------- ----------
<C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $97,626 $11,695 $8,803 $35,401 $4,370
- --------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 10,318 1,246 953 5,736 757
Administration fees 2,579 312 238 1,434 189
Transfer agent fees 1,720 208 159 956 126
Custody and accounting fees 355 64 48 213 44
Registration fees 193 26 33 49 6
Professional fees 40 12 11 26 10
Trustees' fees and expenses 28 4 3 17 3
Amortization of organization costs 13 5 1 15 2
Other 92 30 11 59 8
- -------------------------------------------------------------------------------------------------------------------------------
Total Expenses 15,338 1,907 1,457 8,505 1,145
Less voluntary waivers of:
Investment advisory fees (3,440) (415) (318) (1,912) (253)
Administration fees (1,471) (177) (139) (790) (106)
Less: Reimbursement of expenses by Adviser (969) (173) (127) (545) (92)
- -------------------------------------------------------------------------------------------------------------------------------
Net Expenses 9,458 1,142 873 5,258 694
- -------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 88,168 10,553 7,930 30,143 3,676
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAINS (LOSSES) ON:
Investments 14 - - (3) -
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $88,182 $10,553 $7,930 $30,140 $3,676
===============================================================================================================================
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- -----------------------
STATEMENTS OF CHANGES IN NET ASSETS
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET MONEY MARKET
FUND FUND
-------------------------------- --------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1998 1998 1998 1998
AMOUNTS IN THOUSANDS (UNAUDITED) (UNAUDITED)
- ------------------------------------ -------------------------------- --------------------------------
<C> <C> <C> <C>
OPERATIONS:
Net investment income $ 88,168 $ 123,232 $ 10,553 $ 17,384
Net realized gains on investments 14 3 - 4
- -------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Operations 88,182 123,235 10,553 17,388
- -------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 5,622,208 11,527,035 1,167,146 1,747,441
Shares from reinvestment of dividends 15,005 15,289 2,155 3,063
Shares redeemed (5,114,690) (9,853,484) (1,157,666) (1,647,725)
- -------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Capital Share Transactions 522,523 1,688,840 11,635 102,779
- -------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (88,168) (123,232) (10,553) (17,384)
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 522,537 1,688,843 11,635 102,783
NET ASSETS:
Beginning of period 3,296,030 1,607,187 417,042 314,259
- -------------------------------------------------------------------------------------------------------------------------
End of period $3,818,567 $3,296,030 $428,677 $417,042
=========================================================================================================================
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME $101 $101 $27 $27
=========================================================================================================================
</TABLE>
See Notes to the Financial Statements.
<PAGE>
- ---------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT CALIFORNIA
SELECT MUNICIPAL MUNICIPAL
MONEY MARKET MONEY MARKET MONEY MARKET
FUND FUND FUND
--------------------------- --------------------------- ---------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1998 1998 1998 1998 1998 1998
AMOUNTS IN THOUSANDS (UNAUDITED) (UNAUDITED) (UNAUDITED)
- ------------------------------------ --------------------------- --------------------------- ---------------------------
<C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 7,930 $ 11,165 $ 30,143 $ 48,537 $ 3,676 $ 6,740
Net realized gains (losses)
on investments - 1 (3) 255 - (1)
- ------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations 7,930 11,166 30,140 48,792 3,676 6,739
- ------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 523,025 1,006,456 4,143,102 7,708,423 728,302 1,249,341
Shares from reinvestment of
dividends 2,437 3,723 4,531 5,789 930 1,007
Shares redeemed (509,964) (871,883) (3,999,817) (7,320,165) (716,978) (1,226,493)
- ------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Capital Share
Transactions 15,498 138,296 147,816 394,047 12,254 23,855
- ------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (7,930) (11,165) (30,143) (48,537) (3,676) (6,740)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 15,498 138,297 147,813 394,302 12,254 23,854
NET ASSETS:
Beginning of period 306,425 168,128 1,814,343 1,420,041 224,843 200,989
- ------------------------------------------------------------------------------------------------------------------------------
End of period $321,923 $306,425 $1,962,156 $1,814,343 $237,097 $224,843
==============================================================================================================================
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME $14 $14 $180 $180 $13 $13
==============================================================================================================================
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- ---------------------
FINANCIAL HIGHLIGHTS
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
MONEY MARKET
FUND
-----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995<F2>
(UNAUDITED)
- ------------------------------------- -----------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.05 0.05 0.05 0.04
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.03) (0.05) (0.05) (0.05) (0.04)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
==============================================================================================================================
TOTAL RETURN<F3> 2.60% 5.31% 5.05% 5.57% 4.55%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $3,818,567 $3,296,030 $1,607,187 $1,061,813 $894,279
Ratio to average net assets of<F4>:
Expenses, after waivers and
reimbursements 0.55% 0.55% 0.55% 0.49% 0.45%
Expenses, before waivers and
reimbursements 0.89% 0.90% 0.90% 0.91% 0.96%
Net investment income, after
waivers and reimbursements 5.13% 5.19% 4.94% 5.42% 4.94%
Net investment income, before
waivers and reimbursements 4.79% 4.84% 4.59% 5.00% 4.43%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F2> For the period April 11, 1994 (commencement of operations) through
March 31, 1995.
<F3> Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the period. Total return
is not annualized for periods less than one year.
<F4> Annualized for periods less than a full year.
<PAGE>
- ---------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MONEY MARKET
FUND
-----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995<F2>
(UNAUDITED)
- ------------------------------------------ -----------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.05 0.05 0.05 0.04
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.03) (0.05) (0.05) (0.05) (0.04)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
==============================================================================================================================
TOTAL RETURN<F4> 2.57% 5.22% 4.93% 5.46% 4.47%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $428,677 $417,042 $314,259 $207,105 $227,543
Ratio to average net assets of<F5>:
Expenses, after waivers and
reimbursements 0.55% 0.55% 0.55% 0.49% 0.45%
Expenses, before waivers and
reimbursements 0.92% 0.93% 0.96% 0.94% 1.01%
Net investment income, after
waivers and reimbursements 5.08% 5.10% 4.82% 5.33% 4.93%
Net investment income, before
waivers and reimbursements 4.71% 4.72% 4.41% 4.88% 4.37%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
<TABLE>
<CAPTION>
U.S. GOVERNMENT
SELECT
MONEY MARKET
FUND
-----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995<F3>
(UNAUDITED)
- ------------------------------------------ -----------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.05 0.05 0.05 0.02
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.03) (0.05) (0.05) (0.05) (0.02)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
==============================================================================================================================
TOTAL RETURN<F4> 2.53% 5.24% 5.07% 5.55% 1.75%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $321,923 $306,425 $168,128 $85,400 $82,162
Ratio to average net assets of<F5>:
Expenses, after waivers and
reimbursements 0.55% 0.46% 0.40% 0.33% 0.30%
Expenses, before waivers and
reimbursements 0.92% 0.93% 0.97% 1.00% 1.32%
Net investment income, after
waivers and reimbursements 5.00% 5.13% 4.95% 5.43% 5.84%
Net investment income, before
waivers and reimbursements 4.63% 4.66% 4.38% 4.76% 4.82%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MUNICIPAL
MONEY MARKET
FUND
-----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995<F2>
(UNAUDITED)
- ------------------------------------------ -----------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.03 0.03 0.03 0.03
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.02) (0.03) (0.03) (0.03) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
==============================================================================================================================
TOTAL RETURN<F4> 1.59% 3.27% 3.14% 3.54% 2.90%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $1,962,156 $1,814,343 $1,420,041 $1,102,789 $927,747
Ratio to average net assets of<F5>:
Expenses, after waivers and
reimbursements 0.55% 0.55% 0.55% 0.49% 0.45%
Expenses, before waivers and
reimbursements 0.89% 0.89% 0.90% 0.91% 0.95%
Net investment income, after
waivers and reimbursements 3.15% 3.20% 3.08% 3.46% 3.10%
Net investment income, before
waivers and reimbursements 2.81% 2.86% 2.73% 3.04% 2.60%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F2> For the period April 11, 1994 (commencement of operations) through March
31, 1995.
<F3> For the period December 12, 1994 (commencement of operations) through March
31, 1995.
<F4> Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the period. Total return
is not annualized for periods less than one year.
<F5> Annualized for periods less than a full year.
See Notes to the Financial Statements.
FINANCIAL HIGHLIGHTS (CONTINUED)
MONEY MARKET FUNDS
<TABLE>
<CAPTION>
CALIFORNIA
MUNICIPAL
MONEY MARKET
FUND
-----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995<F2>
(UNAUDITED)
- ------------------------------------------ -----------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.01 0.03 0.03 0.04 0.01
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.01) (0.03) (0.03) (0.04) (0.01)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00
==============================================================================================================================
TOTAL RETURN<F3> 1.47% 3.20% 3.19% 3.63% 1.27%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $237,097 $224,843 $200,989 $165,087 $161,316
Ratio to average net assets of<F4>:
Expenses, after waivers and
reimbursements 0.55% 0.49% 0.45% 0.39% 0.35%
Expenses, before waivers and
reimbursements 0.91% 0.94% 0.94% 0.94% 1.07%
Net investment income, after
waivers and reimbursements 2.91% 3.14% 3.13% 3.55% 3.78%
Net investment income, before
waivers and reimbursements 2.55% 2.69% 2.64% 3.00% 3.06%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F2> For the period November 29, 1994 (commencement of operations) through
March 31, 1995.
<F3> Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the period. Total return
is not annualized for periods less than one year.
<F4> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 9.5%
DOMESTIC CERTIFICATES OF DEPOSIT - 4.6%
Bankers Trust New York Corp.
$29,000 6.01%, 12/10/98 $ 29,011
25,000 5.58%, 1/22/99 24,995
40,000 5.71%, 7/1/99 39,989
10,000 Bank One Milwaukee,
5.55%, 1/29/99 9,999
25,000 CrestarBank,
5.59%, 2/2/99 24,998
46,000 Union Bank of California,
5.72%, 12/8/98 46,000
----------
174,992
----------
FOREIGN CERTIFICATES OF DEPOSIT - 4.9%
Banque Nationale de Paris, New York Branch
35,000 5.52%, 2/18/99 34,974
24,000 5.71%, 3/30/99 23,988
20,000 5.75%, 4/23/99 19,995
32,000 Barclays Bank, New York Branch,
5.56%, 2/25/99 31,992
Canadian Bank Imperial Bank of
Commerce, New York Branch
10,000 5.94%, 10/21/98 10,000
21,000 5.74%, 4/28/99 20,988
Societe Generale, New York Branch
10,000 5.70%, 1/7/99 10,001
15,000 5.75%, 3/5/99 14,998
20,000 5.75%, 4/19/99 19,995
----------
186,931
----------
Total Certificates of Deposit
(cost $351,924) 361,923
----------
COMMERCIAL PAPER - 54.6%
ASSET BACKED SECURITIES - 25.1%
9,300 ABC Funding,
5.52%, 11/2/98 9,254
2,766 Atlantic One Funding Corp.,
5.33%, 1/14/99 2,723
Centauri Corp.
50,000 5.32%, 3/8/99 48,833
20,000 5.10%, 3/25/98 19,504
23,175 Clipper Receivables,
5.85%, 10/1/98 23,175
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ASSET BACKED SECURITIES - 25.1% (CONT'D.)
$20,761 Compass Securitization,
5.59%, 10/26/98 $ 20,680
36,940 Concord Minutemen Capital Co.,
5.50%, 11/5/98 36,742
75,000 Cooper Industries, Inc.,
5.85%, 10/1/98 75,000
Cooperative Association of Tractor
15,500 5.70%, 10/5/98 15,490
13,900 5.52%, 11/16/98 13,802
2,500 5.30%, 1/8/99 2,464
1,100 5.30%, 1/15/99 1,083
2,000 5.23%, 3/17/99 1,951
Corporate Receivables Corp.
25,000 5.31%, 12/7/98 24,753
1,250 5.35%, 12/9/98 1,237
CPI Funding
34,476 5.54%, 10/26/98 34,343
24,972 5.35%, 11/25/98 24,768
20,227 5.07%, 12/25/98 19,809
Dakota Certificates Program
25,000 5.46%, 12/3/98 24,761
25,000 5.46%, 12/4/98 24,757
Diageo PLC
8,000 5.47%, 12/4/98 7,914
24,000 5.33%, 12/11/98 23,748
8,500 5.47%, 12/11/98 8,417
Grayhawk Funding
62,000 5.80%, 10/1/98 62,000
12,500 5.11%, 3/16/99 12,206
Kitty Hawk Funding Corp.
9,344 5.30%, 11/20/98 9,275
34,177 5.46%, 2/16/99 33,462
9,260 KZH Cypress Tree I Corp.,
5.50%, 12/4/98 9,169
4,407 KZH-ING,
5.50%, 12/10/98 4,359
KZH-IV Corp.
6,000 5.53%, 12/10/98 5,936
5,115 5.55%, 12/21/98 5,051
KZH Pamco
5,000 5.56%, 10/22/98 4,984
10,709 5.56%, 10/29/98 10,663
KZH Soleil Corp.
11,821 5.49%, 10/13/98 11,800
5,073 5.56%, 10/16/98 5,061
7,622 5.57%, 10/22/98 7,597
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ASSET BACKED SECURITIES - 25.1% (CONT'D.)
$55,000 MPF Limited,
5.33%, 11/16/98 $ 54,625
Old Line Funding Corp.
6,692 5.60%, 10/8/98 6,685
12,571 5.56%, 10/23/98 12,528
8,101 Pooled Account Receivables Corp.,
5.40%, 12/15/98 8,010
10,000 SALTS (II) Cayman Islands Corp.,
5.74%, 6/17/99 10,000
SALTS (III) Cayman Islands Corp.
10,000 5.71%, 12/18/98 10,000
25,000 5.85%, 1/25/99 25,000
Silver Tower U.S. Funding
14,000 5.51%, 11/18/98 13,897
5,000 5.50%, 12/22/98 4,937
9,275 5.05%, 3/18/99 9,056
Thames Asset Global Securitization
8,483 5.60%, 10/9/98 8,472
27,925 5.59%, 10/13/98 27,873
7,451 5.37%, 12/4/98 7,380
20,000 Triangle Funding,
5.35%, 12/29/98 20,000
Trident Capital Finance, Inc.
25,000 5.50%, 12/8/98 24,740
23,950 5.47%, 12/11/98 23,691
12,500 5.30%, 12/15/98 12,362
7,550 Twin Towers, Inc.,
5.60%, 11/2/98 7,512
6,502 Variable FundingCapital Corp.,
5.60%, 10/2/98 6,501
20,000 Windmill Funding Corp.,
5.57%, 10/9/98 19,975
----------
960,015
----------
BEVERAGES - NON-ALCOHOLIC - 2.3%
Coca Cola Enterprises
20,000 5.51%, 10/8/98 19,792
25,000 5.52%, 10/8/98 24,973
9,000 5.52%, 11/12/98 8,942
20,000 5.50%, 12/8/98 19,979
16,000 5.51%, 12/10/98 15,829
----------
89,515
----------
BROKERAGE SERVICES - 3.6%
52,000 J.P. Morgan and Co.,
5.75%, 3/10/99 52,001
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
BROKERAGE SERVICES - 3.6% (CONT'D.)
$50,000 Lehman Brothers Holdings,
5.50%, 10/29/98 $ 49,786
35,735 Morgan Stanley Dean Witter Discover
Co., 5.30%, 11/13/98 35,509
----------
137,296
----------
COMMERCIAL BANKS - 1.0%
39,500 Bankers Trust Co. New York,
5.48%, 1/22/99 38,821
----------
ELECTRONIC & OTHER ELECTRICAL
COMPONENTS - 2.0%
1,526 GE Engine Receivables 1995-1 Trust,
5.58%, 10/15/98 1,526
4,673 GE Engine Receivables 1996-1 Trust,
5.58%, 10/15/98 4,673
General Electric Capital Corp.
1,250 5.52%, 10/21/98 1,246
13,000 5.50%, 12/24/98 12,833
23,000 5.48%, 2/26/99 22,482
35,000 Sony Capital Corp.,
5.60%, 10/21/98 34,891
----------
77,651
----------
FOREIGN DEPOSITORY INSTITUTIONS - 6.3%
Abbey National North America
28,000 5.35%, 12/8/98 27,717
59,000 5.45%, 12/22/98 58,267
37,000 Credit Communal de Belgique,
5.47%, 12/18/98 36,562
45,000 Generale Bank, Inc.,
5.49%, 12/1/98 44,581
25,000 Societe Generale North America, Inc.,
5.475%, 12/21/98 24,692
Spintab AB/Swedmortgage
29,000 5.52%, 11/9/98 28,827
6,000 5.55%, 12/28/98 5,918
15,000 Svenska Handelsbanken, Inc.,
5.47%, 12/17/98 14,825
----------
241,389
----------
INSURANCE SERVICES - 1.7%
Aetna Service Co.
12,000 5.58%, 10/9/98 11,985
25,000 5.55%, 10/20/98 24,927
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
INSURANCE SERVICES - 1.7% (CONT'D.)
$ 5,432 AON Corp.,
5.56%, 10/13/98 $ 5,422
Torchmark, Inc.
5,000 5.60%, 10/15/98 4,989
7,000 5.62%, 10/21/98 6,978
7,500 5.65%, 10/23/98 7,474
3,797 5.58%, 11/10/98 3,773
----------
65,548
----------
MACHINES & COMPUTER EQUIPMENT - 3.6%
BTR Finance, Inc.
4,300 5.51%, 10/13/98 4,292
4,500 5.49%, 11/13/98 4,470
22,480 5.50%, 11/13/98 22,332
24,000 5.50%, 12/7/98 23,755
36,000 5.45%, 2/18/99 35,237
24,500 5.34%, 2/23/99 23,973
12,500 5.34%, 2/25/99 12,227
10,000 5.25%, 3/8/99 9,770
----------
136,056
----------
MEASURING, ANALYZING &
CONTROL INSTRUMENTS - 1.3%
Johnson Controls
7,500 5.60%, 10/28/98 7,468
22,000 5.57%, 11/18/98 21,837
17,500 Xerox, 5.32%, 3/5/99 17,099
----------
46,404
----------
NONDEPOSITORY BUSINESS
CREDIT INSTITUTIONS - 5.1%
1,000 American Express, 5.73%, 7/12/99 1,000
1,000 Apreco, Inc., 5.50%, 12/15/98 989
Beta Finance Corp.
16,000 5.10%, 3/10/99 15,637
6,000 5.10%, 3/24/99 5,852
Cendant Resident Mortgage Trust
4,000 5.59%, 10/14/98 3,992
12,500 5.43%, 12/11/98 12,366
25,000 Countrywide Home Loans,
5.70%, 8/4/98 24,990
15,000 CSW Credit, Inc.,
5.37%, 12/17/98 14,828
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NONDEPOSITORY BUSINESS
CREDIT INSTITUTIONS - 5.1% (CONT'D.)
Finova Capital Corp.
$13,000 5.53%, 10/20/98 $ 12,962
12,000 5.52%, 10/22/98 11,961
50,000 5.40%, 1/14/99 49,212
17,500 5.40%, 1/19/98 17,211
10,000 5.18%, 3/12/99 9,767
13,000 Sunkyong America, Inc.,
5.50%, 10/28/98 12,946
----------
193,713
----------
PETROLEUM REFINING &
RELATED INDUSTRIES - 0.3%
12,500 Koch Industries, 5.43%, 12/4/98 12,379
----------
TRANSPORTATION PARTS AND EQUIPMENT - 2.0%
5,000 Chrysler Financial Corp.,
6.28%, 6/22/99 5,039
General Motors Acceptance Corp.
15,000 5.55%, 10/8/98 14,984
12,000 5.49%, 10/14/98 11,976
15,000 5.50%, 12/2/98 14,858
15,000 5.50%, 12/3/98 14,856
15,000 5.50%, 12/8/98 14,844
----------
76,557
----------
WHOLESALE TRADE - DURABLE GOODS - 0.3%
10,000 Sinochem American Holdings, Inc.,
5.35%, 11/5/98 9,948
----------
Total Commercial Paper
(cost $2,085,292) 2,085,292
----------
CORPORATE BONDS - 2.2%
Beta Finance Corp.
10,000 6.00%, 10/27/98 10,000
40,000 5.56%, 2/4/99 40,000
5,000 Penney (J.C.) & Co., Inc.,
5.95%, 11/15/98 4,996
27,000 Restructured Assets Certificates with
Enhanced Returns, 5.75%, 11/28/98 27,000
750 USL Capital Corp.,
5.93%, 10/19/98 750
----------
Total Corporate Bonds
(cost $131,305) 82,746
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
EURODOLLAR TIME DEPOSITS - 19.8%
$100,000 Bank of Montreal,
5.75%, 10/1/98 $ 100,000
25,000 Banque Nationale de Paris, Grand
Cayman, 5.75%, 10/1/98 25,000
70,000 Campagnie Financiere de CIC, Grand
Cayman, 5.84%, 10/1/98 70,000
70,000 Credit Commerical de France,
6.00%, 10/1/98 70,000
70,000 Erste Bank, Grand Cayman,
6.25%, 10/1/98 70,000
120,000 KBC Bank Brussels, Belguim,
5.844%, 10/1/98 120,000
140,000 Key Bank N.A., Grand Cayman,
6.00%, 10/1/98 140,000
91,512 National Australia Bank,
6.0%, 10/1/98 91,512
70,000 Skandinaviska Enkildahbanken, Grand
Cayman, 5.875%, 10/1/98 70,000
----------
Total Eurodollar Time Deposits
(cost $756,512) 756,512
----------
GUARANTEED INVESTMENT
CONTRACTS - 2.8%
50,000 General American Life Insurance Co.,
5.75%, 10/23/98 50,000
20,000 Integrity Life Insurance Co.,
6.11%, 10/1/98 20,000
Transamerica Life Insurance and
Annuity Co.
20,000 5.66%, 10/1/98 20,000
15,000 5.65%, 3/19/99 15,000
----------
Total Guaranteed Investment Contracts
(cost $105,000) 105,000
----------
MUNICIPAL INVESTMENTS - 9.5%
11,760 Communaute Urbaine de Lille,
5.89%, 2/15/99 11,760
4,900 Courtyards of Mackinaw LLC,
5.60%, 10/1/98 4,900
5,000 Elsmere Kentucky Mubea, Inc.,
5.67%, 10/1/98 5,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 9.5% (CONT.D)
$13,800 Flint, Michigan Hospital Building
Authority, 5.70%, 10/1/98 $ 13,800
9,000 Hydro-Quebec Corp., Province of
Quebec, 5.76%, 1/15/99 9,000
15,020 Integris Health, Inc., 5.73%, 10/7/98 15,020
3,700 KBL Capital Fund,
5.49%, 10/1/98 3,700
30,000 Los Angeles County, California
Pension Obligation, 5.58%,12/31/98 30,000
4,500 Malone College Project,
5.60%, 10/1/98 4,500
4,431 Municipal Electric Authority of Georgia,
5.53%, 11/2/98 4,431
12,500 New Jersey Economic Development
Authority, 5.64%, 10/7/98 12,500
18,600 Physicians Plus Medical Group,
5.70%, 10/1/98 18,600
20,000 Public Service Electric, 5.85%, 11/1/98 20,000
5,300 Schreiber Industrial Park-North Co.,
Virginia, 5.60%, 10/1/98 5,300
9,360 Seattle, Washington Limited Tax G.O.,
Series C, 5.45%, 10/7/98 9,360
9,600 Stanislaus County, California
Pension Obligation, 5.74%, 2/15/99 9,690
4,400 Texas Municipal Power Agency,
5.65%, 10/14/98 4,400
10,215 Texas State-Veterans Land Bond,
5.76%, 12/1/98 10,215
12,745 Virginia HDA Multi-Family Housing
Bond, 5.74%, 11/1/98 12,745
Virginia State HDA Multi-Family
Housing Bond, Series A
152,136 5.50%, 10/1/98 152,138
4,950 5.65%, 1/1/99 4,950
3,100 Waukesha, Wisconsin Health
Systems, Inc., 5.70%, 10/1/98 3,100
----------
Total Municipal Investments
(cost $326,549) 365,109
----------
Total Investments - 98.4%
(cost $3,756,582) 3,756,582
Other Assets less Liabilities - 1.6% 61,985
----------
NET ASSETS - 100.0% $3,818,567
==========
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
U.S. GOVERNMENT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 76.7%
FANNIE MAE - 3.7%
$ 6,000 FNMA Discount Note,
5.576%, 10/1/98 $ 6,000
FNMA MTN
6,000 5.38%, 2/9/99 5,997
4,000 5.49%, 8/3/99 3,997
----------
15,994
----------
FEDERAL FARM CREDIT BANK - 0.1%
340 FFCB MTN,
5.70%, 12/1/98 340
----------
FEDERAL HOME LOAN BANK - 64.6%
FHLB Bonds
2,595 5.69%, 10/2/98 2,595
3,800 5.70%, 10/23/98 3,800
3,400 5.792%, 10/23/98 3,400
3,200 5.775%, 10/30/98 3,200
5,400 5.50%, 3/19/99 5,398
5,550 5.50%, 3/26/99 5,547
4,000 5.61%, 4/8/99 3,998
8,000 5.63%, 5/5/99 7,995
4,000 5.527%, 6/10/99 3,996
8,000 5.54%, 7/13/99 7,997
4,000 5.536%, 7/15/99 3,997
4,000 5.544%, 8/13/99 3,998
220,992 FHLB Discount Note,
5.475%, 10/1/98 220,992
----------
276,913
----------
OVERSEAS PRIVATE INVESTMENT
CORP. - 4.2%
18,000 FRN, 5.22%, 10/7/98 18,000
----------
SLM HOLDING CORP. - 4.1%
SLMA MTN
4,000 5.72%, 11/20/98 4,000
5,500 5.74%, 12/17/98 5,499
8,000 5.40%, 2/10/99 7,997
----------
17,496
----------
Total U.S. Government Agencies
(cost $328,743) 328,743
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
REPURCHASE AGREEMENTS - 23.3%
$100,000 Warburg Dillon Read, Inc., dated 9/30/98,
repurchase price $100,015 (Colld. by U.S.
Government Securities),
5.50%, 10/1/98 $ 100,000
----------
Total Repurchase Agreements
(cost $100,000) 100,000
----------
Total Investments - 100.0%
(cost $428,743) 428,743
Liabilities less Other Assets - (0.0)% (66)
----------
NET ASSETS - 100.0% $ 428,677
==========
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
U.S. GOVERNMENT SELECT MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 100.2%
FEDERAL FARM CREDIT BANK - 0.8%
FFCB Discount Notes
$ 2,369 5.40%, 10/22/98 $ 2,362
230 5.70%, 12/1/98 230
----------
2,592
----------
FEDERAL HOME LOAN BANK - 97.5%
FHLB Bonds
400 5.70%, 10/23/98 400
9,000 5.63%, 5/5/99 8,994
FHLB Discount Notes
139,032 5.40%, 10/1/98 139,032
1,440 5.69%, 10/2/98 1,440
23,800 5.39%, 10/21/98 23,729
2,400 5.70%, 10/23/98 2,400
2,200 5.792%, 10/23/98 2,200
12,625 5.40%, 10/30/98 12,570
2,200 5.775%, 10/30/98 2,200
31,500 5.40%, 11/18/98 31,273
4,500 5.40%, 11/20/98 4,466
49,409 5.345%, 11/25/98 49,006
6,000 5.25%, 11/27/98 5,950
4,000 5.435%, 2/2/99 3,998
5,200 5.52%, 3/23/99 5,198
3,000 5.50%, 3/26/99 2,999
6,000 5.61%, 4/8/99 5,997
6,000 5.527%, 6/10/99 5,993
6,000 5.536%, 7/15/99 5,996
----------
313,841
----------
SLM HOLDING CORP. - 1.9%
SLMA MTN
2,500 5.72%, 11/20/98 2,500
3,500 5.74%, 12/17/98 3,499
----------
5,999
----------
Total U.S. Government Agencies
(cost $322,432) 322,432
----------
NUMBER
OF SHARES VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OTHER - 0.0%
1 Dreyfus Prime Money Market Fund
(cost $1) $ 1
----------
Total Investments - 100.2%
(cost $322,433) 322,433
Liabilities less Other Assets - (0.2)% (510)
----------
NET ASSETS - 100.0% $ 321,923
==========
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 99.5%
ALABAMA - 0.7%
$ 1,800 Ashland City Industrial Development
Board IDR (AMT), Russell Corp. Project
(SunTrust Banks, Inc. LOC),
4.15%, 10/7/98 $ 1,800
2,575 Columbia City Industrial Development
Board IDR (AMT), Russell Corp. Project
(SunTrust Banks, Inc. LOC),
4.15%, 10/7/98 2,575
2,575 Geneva County Industrial Development
Board IDR (AMT), Russell Corp. Project
(SunTrust Banks, Inc. LOC),
4.15%, 10/7/98 2,575
700 Greenville City IDR VRDN, Series 1992,
Allied-Signal Project (FMC Corp. Gtd.),
3.80%, 10/7/98 700
3,500 McIntosh City Industrial Development
Board Series 1998 E (AMT), Ciba Specialty
Chemical Corp., 4.35%, 10/1/98 3,500
2,500 Selma City IDR VRDN, Series 1996 A,
Meadowcraft, Inc. Project (NationsBank
LOC), 4.15%, 10/7/98 2,500
----------
13,650
----------
ALASKA - 0.3%
7,025 Alaska Housing Finance Corp.,
Series PT-37, Merrill P-Floats (Banque
Nationale Paris LOC), 3.97%, 10/1/98 7,025
----------
ARIZONA - 1.3%
1,325 Apache County IDR VRDN (AMT),
Imperial Components, Inc. Project (Harris
Trust & Savings Bank LOC), 4.05%, 10/7/98 1,325
5,800 Cochise County PCR VRDN Solid Waste,
Series 1994 A (AMT), Arizona Electric Project,
(National Rural Utility Cooperative Finance
Corp. Gtd.), 3.55%, 3/1/99 5,800
2,235 Maricopa County PCR VRDN, Series A,
El Paso Electric Project (Westpac Banking
Corp., LOC), 3.60%, 10/7/98 2,235
15,420 Scottsdale City Preserve Authority Excise
Tax Revenue, Morgan Stanley Floating
Certificates Series 17 (FGIC Insured),
4.17%, 10/7/98 15,420
----------
24,780
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ARKANSAS - 0.3%
$ 3,250 Lowell City IDR VRDN, Series 1996
(AMT), Little Rock Newspapers, Inc.
Project (Bank of New York LOC),
3.80%, 10/7/98 $ 3,250
2,100 West Memphis City IDR VRDN (AMT),
Proform Co. LLC Project (First Bank LOC),
4.25%, 10/7/98 2,100
----------
5,350
----------
CALIFORNIA - 1.0%
California State G.O. Bond
(FGIC Insured)
200 Series CR-52, 3.75%, 10/7/98 200
800 Series 5027 C, 3.75%, 10/7/98 800
7,460 California State HFA Home Mortgage
Revenue FRN, Series E (AMT),
3.55%, 3/12/99 7,460
7,500 Irvine Ranch County Consolidated
Water District VRDN, Series 1993 B,
Districts 2, 102, 103, 106, 203 & 206
(Morgan Guaranty Trust Co. LOC),
3.80%, 10/1/98 7,500
2,746 Los Angeles City IDR VRDN, Series BTP-129
(Colld. by U.S. Government Securities),
3.90%, 10/8/98 2,746
----------
18,706
----------
COLORADO - 1.8%
Arapahoe County Capital Improvements
TOB, Project E-470 (Colld. by U.S.
Government Securities)
10,000 Series E BTP-254, 4.15%, 10/7/98 10,000
15,038 Series E BTP-255, 4.15%, 10/7/98 15,038
4,500 Colorado HFA VRDN (AMT), Metal Sales
Manufacturing Corp. Project (Star Bank
LOC), 4.20%, 10/1/98 4,500
4,800 Denver City and County, Series 1997 A
(AMT), Airport Systems Sub Revenue
(Bayerische Landesbank LOC),
3.55%, 10/30/98 4,800
1,500 Pitkin County IDR, Series1994 B (AMT),
Aspen Skiing Project (First National Bank
Chicago LOC), 4.25%, 10/1/98 1,500
----------
35,838
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CONNECTICUT - 2.9%
Connecticut State Reset Option Certificates
$12,080 Series 3, 4.17%, 10/7/98 $ 12,080
45,610 Series 4, 4.17%, 10/7/98 45,610
----------
57,690
----------
DELAWARE - 0.4%
3,200 Delaware State Economic Development
Authority IDR VRDN, Series 1998 (AMT),
C&C Family Limited Partnership
(PNC Bank LOC), 4.20%, 10/7/98 3,200
1,325 Delaware State Economic Development
Authority PCR VRDN, Allied-Signal Corp.
Project (FMC Corp. Gtd.), 3.80%, 10/7/98 1,325
2,700 Delaware State Economic Development
Authority Waste Disposal, Series 1996 A
(AMT), Ciba-Geigy Corp. Project (Union
Bank of Switzerland), 4.30%, 10/1/98 2,700
----------
7,225
----------
DISTRICT OF COLUMBIA - 2.5%
29,500 District of Columbia Metro Airport
Authority (AMT), Passenger Facility Flexible
Term Notes (NationsBank North Carolina
LOC), 3.70%, 10/9/98 29,500
6,745 District of Columbia Metro Airport
Authority Revenue & Refundings Bonds,
(AMT), BTP-312, 4.16%, 10/7/98 6,745
6,675 District of Columbia Metro Airport
Authority Revenue, Series B (AMT),
BTP-311, 4.16%, 10/7/98 6,675
6,600 District of Columbia Water & Sewer, Series
1998, Citibank Eagle Trust Series 985201
(FSA Insured), 4.07%, 10/7/98 6,600
----------
49,520
----------
FLORIDA - 2.0%
1,900 Boward County HFA VRDN, Series 1984,
Welleby Apartment Projects (Bank of
America LOC), 3.70%, 10/7/98 1,900
4,385 Duval County HFA Mortgage Revenue
VRDN, Series 1996-3A (AMT), Clipper Trust
Certificate, 4.17%, 10/7/98 4,385
7,300 Florida State Board of Education Capital
Outlay, Series A, Citicorp Eagle Trust,
4.07%, 10/7/98 7,300
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
FLORIDA - 2.0% (CONT'D.)
$ 4,000 Florida State Board of Education Capital
Outlay, Series 1998-9, ABN-AMRO
Minitops (FSA Insured), 3.79%, 10/7/98 $ 4,000
6,595 Florida State Board of Education VRDN,
Series 1991-B, BTP-233, 3.90%, 10/8/98 6,595
11,400 Florida State Board of Education VRDN,
Series 1994 E, Eagle Trust, 4.12%, 10/7/98 11,400
4,400 Florida State Housing Finance Agency,
Series 2 (AMT) (MBIA Insured),
3.90%, 10/7/98 4,400
----------
39,980
----------
GEORGIA - 3.0%
8,400 Atlanta City Metro Rapid Transit Authority
Sales Tax, Series A, Muni Trust Certificates
(MBIA Insured), 4.17%, 10/7/98 8,400
3,000 Clayton County Housing Authority
Revenue VRDN (AMT), Williamsburg South
Apartments Project (PNC Bank LOC),
4.15%, 10/7/98 3,000
5,300 Clayton County IDA IDR VRDN (AMT),
Blue Circle Aggregates, Inc. Project
(Denmark Danske Bank LOC),
4.10%, 10/7/98 5,300
5,200 DeKalb County Housing Authority
Revenue VRDN, Series 1995 (AMT), Cedar
Creek Apartment Project (General Electric
Capital Corp. LOC), 4.15%, 10/7/98 5,200
2,065 Forsyth County IDA VRDN, Series 1998
(AMT), World Access, Inc. Project,
4.15%, 10/7/98 2,065
Georgia HFA Conventional Mortgage TOB
(AMT), Various Programs (Bank of Austria LOC)
3,200 Series 1990 C, 3.85%, 12/1/98 3,200
1,125 Series 1990 D, 3.80%, 12/1/98 1,125
16,000 Georgia State G.O. Unlimited, Series B,
4.35%, 10/1/98 16,000
2,000 Gwinett County IDR, Series 1998 (AMT),
Network Publications, Inc. (NationsBank
LOC), 4.10%, 10/1/98 2,000
4,150 Henry County Development Authority,
Series 1997 (AMT), Atlas Roofing Corp.
Project (SunTrust Banks, Inc. LOC),
4.15%, 10/7/98 4,150
1,750 Richmond County Board of Education
Unlimited Tax G.O. (State Aid Withholding
Insured), 4.00%, 9/1/99 1,758
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
GEORGIA - 3.0% (CONT'D.)
$ 5,000 Savannah City Economic Development
Authority, Series 1997 (AMT), Kaolin
Terminals Project (NationsBank LOC),
4.10%, 10/7/98 $ 5,000
2,000 Whitfield County IDA, Series 1998 (AMT),
H&S Whitting, Inc. Project (NationsBank
LOC), 4.10%, 10/7/98 2,000
----------
59,198
----------
HAWAII - 2.4%
5,000 Hawaii State Department of Budget and
Finance, Series A (AMT), Hawaiian Electric
Co. Project (MBIA Insured),
4.15%, 10/7/98 5,000
8,000 Hawaii State Department of Budget and
Finance, Kaiser Permanente Project,
3.80%, 3/1/99 8,000
6,375 Hawaii State G.O., Series CS BTP-302
(MBIA Insured), 4.15%, 10/7/98 6,375
9,990 Hawaii State HFA SFM, Series A P-Floats
PT-1049 (AMT), 4.15%, 10/7/98 9,990
7,000 Hawaii State, Series 5, Reset Option
Certificates (FGIC Insured),
4.17%, 10/7/98 7,000
10,000 Honolulu City and County G.O. Bonds,
Series 1997 C (Citibank Trust LOC),
4.22%, 10/7/98 10,000
----------
46,365
----------
ILLINOIS - 12.0%
3,500 Arlington Heights IDR VRDN, Series 1997
(AMT), 3E Graphics and Printing Project,
(Harris Trust & Savings LOC),
4.05%, 10/7/98 3,500
9,580 Aurora City Rental Housing Revenue Bonds,
Series PA-328 Fox Valley Project (Merrill
Lynch Gtd.), 4.19%, 10/7/98 9,580
2,215 Bedford Park City IDR VRDN, Series 1997,
Cintas Sales Corp. Project (PNC Bank Ohio
N.A. LOC), 4.05%, 10/7/98 2,215
11,320 Chicago City Building Acquisition
Certificates, Series 1997 SSP-7 (FSA
Insured), 4.02%, 10/7/98 11,320
2,655 Chicago City IDR, Series B (AMT),
Guernsey Bel, Inc. Project (Harris Trust
& Savings Bank LOC), 4.05%, 10/7/98 2,655
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ILLINOIS - 12.0% (CONT'D.)
$14,495 Chicago City Lakefront Millennium
Parking, Series 1998, Citicorp Eagle Trust
(MBIA Insured), 4.07%, 10/7/98 $14,495
1,300 Chicago City 2nd Lien VRDN, Series
1998 B (AMT), Midway Airport
(MBIA Insured), 4.30%, 10/1/98 1,300
5,500 Chicago City Midway Airport Revenue
VRDN, Series 1995 (AMT), American Trans
Air, Inc. Project (National Bank of Detroit
LOC), 4.05%, 10/7/98 5,500
2,400 Chicago City O'Hare International Airport
Revenue VRDN, Series 1988 A (AMT)
(Bayerische Landesbank LOC),
3.60%, 10/7/98 2,400
10,000 Chicago City Project and Refunding Board,
Series 1998 M, BA Partnerships
(FGIC Insured), 3.40%, 8/4/99 10,000
9,495 Chicago City Public Building Commission,
Series A PA-155, P-Floats (MBIA Insured),
3.75%, 1/14/99 9,495
20,700 Chicago City G.O. Bonds, Series 1998,
Citicorp Eagle Trust (FSA Insured),
4.07%, 10/7/98 20,700
3,885 Chicago City Sales Tax Revenue, Series
1998 PCR-8 (FGIC Insured),
4.12%, 10/7/98 3,885
1,730 Des Plaines City IDR VRDN, Series 1996
(AMT), Finzer Roller, Inc. Project (Harris
Trust & Savings Bank LOC),
4.05%, 10/7/98 1,730
9,400 Dupage County Water Commission Water
Revenue, 4.09%, 10/7/98 9,400
3,650 Frankfort City IDR, Series 1996 (AMT),
Bimba Manufacturing Co. Project (Harris
Trust & Savings Bank LOC),
4.05%, 10/7/98 3,650
5,000 Fulton County IDR VRDN, Series 1998
(AMT), Drives, Inc. Project (Harris Trust
& Saving Bank), 4.05%, 10/7/98 5,000
1,660 Illinois Development Finance Authority
IDR VRDN (AMT), Bimba Manufacturing
Co. Project (Harris Trust & Savings Bank
LOC), 4.05%, 10/7/98 1,660
5,950 Illinois Development Finance Authority IDR
VRDN, Enterprise Office Campus (FNMA
LOC), 3.75%, 12/1/98 5,950
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ILLINOIS - 12.0% (CONT'D.)
$ 2,265 Illinois Development Finance Authority
IDR VRDN, Series 1997 A (AMT), Randall
Metals Corp. Project (LaSalle National
Bank LOC), 4.25%, 10/7/98 $ 2,265
5,500 Illinois Development Finance Authority,
Series 1998 (AMT), Flying Food Fare, Inc.
(Bank of America LOC), 4.10%, 10/7/98 5,500
4,100 Illinois Development Finance Authority
VRDN (AMT), Series 1997 (AMT), Ciccone
Food Products Project (Harris Trust &
Savings Bank LOC), 4.05%, 10/7/98 4,100
1,400 Illinois Development Finance Authority
VRDN, Series 1990 (AMT), Solar Press, Inc.
Project (First National Bank of Chicago
LOC), 3.80%, 10/7/98 1,400
5,000 Illinois Educational Facility Authority,
University of Chicago, 4.07%, 10/7/98 5,000
2,000 Illinois Health Facility Authority, Series
1994 Streetville Corp. (First National Bank
of Chicago LOC), 3.65%, 10/7/98 2,000
10,000 Illinois State G.O. TOB, Series 1998 PCR-9
(FSA Insured), 4.12%, 10/7/98 10,000
3,000 Illinois State G.O. Unlimited Bond,
5.60%, 6/1/99 3,039
7,500 Ladd Village IDR VRDN, Series 1996 (AMT),
O'Neal Metals, Inc. Project (NationsBank
LOC), 4.15%, 10/7/98 7,500
15,806 Metropolitan Pier & Exposition Authority,
Dedicated Sales Tax Revenue BTP-230
(Colld. by U.S. Government Securities),
4.05%, 10/7/98 15,806
3,560 Metropolitan Pier & Exposition Authority,
Series 1996 A, McCormick Place Project
(AMBAC Insured), 3.80%, 10/7/98 3,560
2,950 Niles Village IDR VRDN, Series 1996
(AMT), Lewis Spring and Manufacturing
Co. Project (Harris Trust & Savings Bank
LOC), 4.05%, 10/7/98 2,950
7,900 Palos Hill County Multifamily Housing,
Series 1998 (AMT), Green Oaks Project,
(LaSalle National Bank LOC),
3.75%, 10/7/98 7,900
9,700 Pooled Puttable Float Option (AMT),
Series PT6, Various State and Housing
Agencies, 4.07%, 7/8/99 9,700
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ILLINOIS - 12.0% (CONT'D.)
$ 3,000 Rockford City IDR, Series 1998 (AMT),
Ring Can Corp. Project (SunTrust Bank
LOC), 4.15%, 10/7/98 $ 3,000
2,375 Romeoville City IDR, Series 1997 (AMT),
Metropolitan Industries, Inc. Project
(Harris Trust & Savings Bank LOC),
4.05%, 10/7/98 2,375
11,200 Schaumburg City Multifamily Housing,
Series 1989 Treehouse II Apartments
Project (Barclays Bank LOC),
4.10%, 10/7/98 11,200
6,000 Savanna City IDR VRDN, Series 1994
(AMT), Metform Corp. Project (First
National Bank of Chicago LOC),
3.80%, 10/7/98 6,000
5,800 St. Clair County IDR (AMT), Stellar
Manufacturing Project (NationsBank LOC),
4.15%, 10/7/98 5,800
2,100 Will County Solid Waste, Series 1997
(AMT) (BASF Corp. Gtd.),
4.35%, 10/1/98 2,100
----------
235,630
----------
INDIANA - 2.2%
2,790 Anderson City Economic Development
VRDN, Series 1996 (AMT), Gateway Village
Project (FHLB LOC), 4.10%, 10/7/98 2,790
1,500 Greencastle City IDR VRDN, Series 1996
(AMT), Crown Equipment Corp. Project
(Mellon Bank LOC), 4.20%, 10/7/98 1,500
2,840 Hammond City Economic Development
VRDN, Series 1996 A (AMT), Annex at
Douglas Point Project (FHLB LOC),
4.10%, 10/7/98 2,840
8,000 Indiana Bond Bank, Advanced Funding
Program, Series A-2, 4.00%, 1/20/99 8,009
Indiana Development Finance Authority
IDR VRDN (AMT), Red Gold, Inc. Project
(Harris Trust & Savings Bank LOC)
4,600 Series 1994 A, 4.05%, 10/7/98 4,600
2,900 Series 1994 B, 4.05%, 10/7/98 2,900
12,000 Indiana Transportation Authority
Highway Revenue, Citicorp Eagle Trust,
3.65%, 11/2/98 12,000
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
INDIANA - 2.2% (CONT'D.)
$5,000 Indianapolis City Local Public
Improvement Bond, Series B Bank Notes,
4.25%, 1/11/99 $ 5,008
3,000 Jasper County PCR VRDN, Series 1998 B,
Northern Indiana Public Service Project,
3.55%, 11/12/98 3,000
----------
42,647
----------
IOWA - 1.1%
7,580 Cedar Rapids City G.O. Unlimited Bond,
PA-251, 4.14%, 10/7/98 7,580
2,240 Iowa Finance Authority, Series A, SFM
Backed Program (GNMA/FNMA Insured),
3.65%, 2/24/99 2,240
3,475 Iowa Finance Authority, Series B (AMT),
SFM Backed Program (GNMA/FNMA
Insured), 3.70%, 2/24/99 3,475
5,300 Iowa Finance Authority Waste Disposal
Revenue VRDN (AMT), Cedar River Paper
Co. Project, Series 1997 A, (Bank of Nova
Scotia LOC), 4.35%, 10/1/98 5,300
1,200 Iowa Finance Authority Waste Disposal
Revenue VRDN (AMT), Cedar River Paper
Co. Project, Series 1998 A (United Bank of
Switzerland LOC), 4.35%, 10/1/98 1,200
1,200 Iowa Student Loan Liquidity Corp., Series C
(AMT) (AMBAC Insured), 6.30%, 3/1/99 1,214
----------
21,009
----------
KANSAS - 1.1%
6,200 Burlington City Environment Improvement,
Series B, Kansas City Power & Light Co.,
3.70%, 10/7/98 6,200
8,500 Douglas County Temporary Notes, Series 3,
3.75%, 8/1/99 8,501
7,645 Kansas City Collaterized Mortgage,
Series 1998 B (AMT) (GNMA Colld.),
3.90%, 10/7/98 7,645
----------
22,346
----------
KENTUCKY - 2.4%
5,701 Carroll County Solid Waste Disposal
Revenue VRDN (AMT), North American
Stainless Project (Banco Bilbao Vizcaya
LOC), 4.50%, 10/7/98 5,701
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
KENTUCKY - 2.4% (CONT'D.)
$ 3,030 Clark County Industrial Building IDR
VRDN, Series 1996 (AMT), Bluegrass Art
Cast Project (Bank One LOC),
4.15%, 10/7/98 $ 3,030
Daviess County Waste Disposal Facility
IDR VRDN (AMT), Scott Paper Co. Project
(Kimberly-Clark Corp. Gtd.)
6,500 Series 1993 B, 4.25%, 10/1/98 6,500
12,500 Series 1994 A, 4.25%, 10/1/98 12,500
Louisville and Jefferson Counties VRDN
(AMT), Regional Airport Authority System
(National City Bank of Louisville LOC)
7,000 Series 1997 A-1, 4.15%, 10/7/98 7,000
10,000 Series 1997 A-1, 4.15%, 10/7/98 10,000
2,500 Mayfield City Lease Revenue VRDN,
Series 1996, Kentucky League of Cities
Pooled Project (PNC Bank LOC),
3.70%, 10/7/98 2,500
----------
47,231
----------
LOUISIANA - 0.4%
Ascension Parish County VRDN, (AMT),
BASF Corp. Project (BASF Corp. Gtd.)
2,700 Series 1995, 4.35%, 10/1/98 2,700
2,000 Series 1997, 4.35%, 10/1/98 2,000
4,000 South Louisiana Port Commission, Series
1997 (AMT), Holnam, Inc. Project (ABN-
AMRO Holding LOC), 3.60%, 10/7/98 4,000
----------
8,700
----------
MAINE - 0.8%
2,000 Fort Fairfield County Revenue Bond (AMT),
Atlantic Custom Processors (PNC Bank
LOC), 4.20%, 10/7/98 2,000
5,000 Maine Public Utility Finance Bank
Revenue VRDN, Series 1996 (AMT), Maine
Public Service Co. Project (Bank of New
York LOC), 3.80%, 10/7/98 5,000
8,900 Maine State Housing Authority (AMT),
Multifamily Development, Park Village
Apartment Project (GE Capital Corp.
LOC), 4.13%, 10/7/98 8,900
----------
15,900
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MARYLAND - 0.5%
$ 1,100 Baltimore City Economic Development
VRDN, Series 1985, Mt. Washington
Pediatric Hospital, Inc. (Mellon Bank LOC),
3.95%, 10/7/98 $ 1,100
3,360 Cecil County Economic Development
VRDN (AMT), Steel Techs Inc. Facility
(PNC Bank LOC), 4.20%, 10/7/98 3,360
10 Maryland State Community Development
Administration, Series PT-12, Merrill
P-Floats (Commerzbank A.G. LOC),
3.97%, 10/1/98 10
2,890 Maryland State Economic Development
Corp. VRDN (AMT), Unsite Design, Inc.
(Mellon Bank N.A. LOC), 4.00%, 10/7/98 2,890
3,000 Maryland State IDA, Townsend Culinary,
Inc. Project (SunTrust Banks, Inc. LOC),
4.15%, 10/7/98 3,000
----------
10,360
----------
MASSACHUSETTS - 2.3%
9,000 Gloucester City BAN, 4.00%, 8/5/99 9,025
22,920 Massachusetts Bay Transportation Authority,
Series C, Muni Floating Rate Trust
Certificates, 4.14%, 10/7/98 22,920
8,800 Massachusetts State G.O. Floating Rate
Trust Certificate, Series 1998-41,
4.17%, 10/7/98 8,800
2,160 Massachusetts State HFA VRDN, Series
1996-5A (AMT), Clipper Trust Certificate
(AMBAC Insured), 4.17%, 10/7/98 2,160
2,200 Massachusetts State HFA VRDN, Series
PA-132 (AMT), Harbor Point Project
(AMBAC Insured), 4.15%, 10/7/98 2,200
----------
45,105
----------
MICHIGAN - 3.9%
20,000 Detroit City School District, Series 1998,
State School Aide Notes, 4.50%, 7/1/99 20,123
13,035 Michigan State HDA, Series D (AMT),
BTP-197, 4.31%, 10/7/98 13,035
20,700 Michigan State Trunk Line Bonds, Series
1998 A, Floating Rate Trust Certificates,
4.17%, 10/7/98 20,700
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MICHIGAN - 3.9% (CONT'D.)
$3,000 Michigan Strategic Fund Ltd. (AMT),
Dirksen Screw Co. Project (National Bank
of Detroit LOC), 4.15%, 10/7/98 $ 3,000
5,170 Michigan Strategic Fund Ltd. VRDN, Series
1998 (AMT), GT USA LLC Project
(Comerica Bank LOC), 4.15%, 10/7/98 5,170
5,840 Michigan Strategic Fund Ltd. VRDN, Series
1992 (AMT), Dow Chemical Co. Project
(Dow Chemical Gtd.), 4.30%, 10/1/98 5,840
2,160 Michigan Strategic Fund Ltd. VRDN (AMT),
Kruger Commodities, Inc. Project (Harris
Trust & Savings Bank LOC), 4.05%, 10/7/98 2,160
6,500 Oakland County Economic Development
Corp., Series 1998 (AMT), Richard and Tool
Die Corp. (Comercia Bank LOC),
4.20%, 10/7/98 6,500
----------
76,528
----------
MINNESOTA - 1.0%
9,005 Eden Prairie Multifamily Housing, Park at
City West Project (Barclays Bank LOC),
4.10%, 10/7/98 9,005
8,100 Minnesota State Housing Finance Agency
SFM, Series 1998 F (AMT), 3.70%, 8/9/99 8,100
3,060 Stearns County Housing & Redevelopment
Authority VRDN (AMT), Cold Spring
Granite Co. Project (First Bank LOC),
4.25%, 10/7/98 3,060
----------
20,165
----------
MISSISSIPPI - 1.0%
9,325 Mississippi State G.O. Refunding
Bonds, Series BTP-207, 3.80%, 10/7/98 9,325
6,695 Mississippi State Home Corp., Series G-CL5
(AMT), PT-218 A, P-Floats, 3.80%, 2/11/99 6,695
3,310 Mississippi State Home Single Family
Revenue Bonds, Series G-CL5 (AMT),
PT-146, P-Floats, 4.15%, 10/7/98 3,310
----------
19,330
----------
MISSOURI - 1.5%
8,500 Missouri Higher Education Loan Authority
Series 1990 B (National Westminister LOC),
3.65%, 10/7/98 8,500
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MISSOURI - 1.5% (CONT'D.)
$ 1,000 Missouri Higher Education Loan Authority
VRDN, Series 1991 B (AMT) (MBIA Insured),
3.85%, 10/7/98 $ 1,000
5,780 Missouri Housing Development VRDN,
Series 1994 A (AMT), Merrill P-Floats
PA-116 (Colld. by U.S. Government
Securities), 4.15%, 10/7/98 5,780
6,500 St. Louis General Fund Bond, TRAN,
4.50%, 6/30/99 6,540
8,000 St. Louis City IDA VRDN, Series 1995
(AMT), Whispering Lakes Apartment
Project (Mercantile Bank of St. Louis LOC),
4.40%, 10/7/98 8,000
----------
29,820
----------
MONTANA - 0.4%
Montana Board of Housing SFM VRDN,
Merrill P-Floats
3,710 Series 1996-A-2, PT-87, 4.15%, 10/7/98 3,710
3,920 Series 1997, PA-158, 4.15%, 10/7/98 3,920
----------
7,630
----------
NEBRASKA - 0.6%
4,350 Nebraska Investment Finance Authority,
Series B (FGIC Insured), SFM Revenue TOB,
3.60%, 1/15/99 4,350
1,900 Nebraska Investment Finance Authority,
Series A3 (AMT), SFM Revenue,
3.90%, 10/7/98 1,900
5,700 Omaha Public Power District, Series A,
Electric Revenue Bond, Series A,
4.05%, 2/1/99 5,709
----------
11,959
----------
NEVADA - 1.5%
4,000 Clark County G.O. Bond, Las Vegas
Convention Authority, SocGen Trust
SGB18, 4.17%, 10/7/98 4,000
6,830 Clark County School District G.O.,
4.17%, 10/7/98 6,830
18,065 Nevada State G.O. VRDN, Series 1997
SGB31 (FGIC Insured), 4.17%, 10/7/98 18,065
----------
28,895
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NEW HAMPSHIRE - 0.6%
$11,900 New Hampshire State Business Finance
Authority, Series A (AMT), United
Illuminating Co. (Barclays Bank of New
York LOC), 3.65%, 10/7/98 $ 11,900
----------
NEW JERSEY - 0.7%
13,515 New Jersey Transportation Trust Fund
Authority, Series 1996 B PT-161,
3.70%, 2/26/99 13,515
----------
NEW MEXICO - 0.3%
5,140 New Mexico Mortgage Finance Authority
SFM, Series B2 PT-196 (AMT),
3.75%, 5/13/99 5,140
----------
NEW YORK - 2.8%
589 Marine Midland Premium Loan Trust
Variable Rate COP, Series 1991 A, (Hong
Kong and Shanghai Banking Corp. LOC),
4.05%, 10/7/98 589
3,200 New York City Muni Water Finance
Authority, Series 94E, Water and Sewer
System Revenue Bonds (MBIA Insured),
4.12%, 10/7/98 3,200
10,885 New York City Transitional Finance
Authority, Series A, Muni Floating Rate
Certificates, 4.17%, 10/7/98 10,885
12,500 New York State Dorm Authority, Series
1994 B, State University Education Facility,
Floating Rate Certificates (Colld. by U.S.
Government Securities), 4.17%, 10/7/98 12,500
2,100 New York State Dorm Authority, Series A,
Rockefeller University Citicorp Eagle Trust
9703202 (Colld. by U.S. Government
Securities), 4.07%, 10/7/98 2,100
20,715 New York State Dorm Authority, Series A,
State University (Colld. by U.S. Government
Securities), 4.17%, 10/7/98 20,715
2,800 New York State Environmental Facilities
Corp. PCR VRDN, Series No. 94302, Eagle
Trust-Weekly (FSA Insured), 4.07%, 10/7/98 2,800
2,145 Pooled VRDN, P-Floats, Series PPT2
(Backed by Alaska HFA & South Dakota
HDA), 4.07%, 10/1/98 2,145
----------
54,934
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NORTH CAROLINA - 2.3%
$ 2,400 Brunswick County PCR IDR VRDN, Series
1996 (AMT), Armada Project (NationsBank
LOC), 4.10%, 10/7/98 $ 2,400
5,800 Capital Regional Airport Commission
Passenger Facility Charge Revenue VRDN
(AMT) (First Union National Bank of
Charlotte LOC), 4.10%, 10/7/98 5,800
7,300 Catawba County PCR IDR, Series 1996
(AMT), Hooker Furniture Corp. Project
(NationsBank LOC), 4.10%, 10/7/98 7,300
3,000 Columbus County Industrial Facility and
PCR Authority, Series 1998 (AMT),
Conflandey, Inc. Project (Banque Nationale
Paris LOC), 4.15%, 10/7/98 3,000
2,500 Mecklenburg County PCR IDR VRDN,
Series 1996 (AMT), SteriGenics International
Project (Comerica Bank LOC),
3.75%, 10/7/98 2,500
20,000 North Carolina State G.O., Series
A, P-Floats PA-260, 4.14%, 10/7/98 20,000
3,800 North Carolina State Ports Authority
VRDN, Series 1996 (AMT), Morehead City
Terminals, Inc. (NationsBank LOC),
4.10%, 10/7/98 3,800
----------
44,800
----------
NORTH DAKOTA - 0.2%
3,770 North Dakota HFA SFM, Series 1998 A
(AMT) (FHA/Private Mortgages Insured),
3.65%, 1/1/99 3,770
----------
OHIO - 4.0%
14,640 Cleveland City Waterworks, Banc One
Muni Trust Certificates (FSA Insured),
4.17%, 10/7/98 14,640
6,590 Dublin Inn Tax Exempt Mortgage Bond
Trust, Series 1987 Six Month Demand Adj.
Rate Certificate (Huntington National Bank
LOC), 4.57%, 3/1/99 6,590
24,800 Greystone County Certificate Trust, Series
1998-1 Variable Rate Senior Certificate
(Credit Suisse First Boston LOC),
4.15%, 10/7/98 24,800
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OHIO - 4.0% (CONT'D.)
$9,000 Ohio State Air Quality Development
Authority VRDN, Series A, Ohio Edison
Project (Toronto Dominion Bank LOC),
3.65%, 2/1/99 $ 9,000
4,755 Ohio State HFA VRDN, Series 1989 A
(AMT), 3.80%, 10/7/98 4,755
5,875 Ohio State Infrastructure Improvement
VRDN, Series 1994, BTP-170,
3.75%, 10/22/98 5,875
8,910 Ohio State Public Facility Commission,
Series II A, Higher Education Facilities
BTP-237 (AMBAC Insured),
4.05%, 10/7/98 8,910
1,900 Ohio State Water Development Authority
PCR VRDN, Philip Morris Co. Project
(Philip Morris Cos., Inc. Gtd.),
4.15%, 10/7/98 1,900
2,500 Union County IDR VRDN (AMT), Union
Aggregates Co. Project (PNC Bank LOC),
4.20%, 10/7/98 2,500
----------
78,970
----------
OKLAHOMA - 1.2%
6,400 Oklahoma Water Resources Board, Series
1994 A, State Loan Program (Swiss Bank
Corp. LOC), 3.75%, 3/18/99 6,400
Tulsa City Airport Improvement VRDN
(AMT) (MBIA Insured)
7,245 Series B-1, 4.12%, 10/7/98 7,245
9,390 Series B-2, 4.12%, 10/7/98 9,390
----------
23,035
----------
OREGON - 1.2%
1,100 Metropolitan Service District Riedel Oregon
Compost Waste Disposal VRDN (AMT) (US
Bank NA LOC), 3.90%, 10/7/98 1,100
4,820 Multnomah County School District G.O.
Bond, Series 1996 BTP-208,
3.90%, 12/1/98 4,820
3,900 Oregon State Economic Development
Revenue, Series 176 (AMT), Cascade Steel
Rolling Mills Project (Commerzbank A.G.
LOC), 3.80%, 10/7/98 3,900
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OREGON - 1.2% (CONT'D.)
$ 6,600 Oregon State Economic Development
Revenue, Series 181 (AMT), Oregon Metal
Slitters, Inc. (Key Bank N.A. LOC),
3.65%, 10/7/98 $ 6,600
1,590 Portland City Multifamily Revenue VRDN,
Series 1996 (AMT), Union Station Project -
Phase B (US Bank NA LOC),
4.14%, 10/7/98 1,590
5,000 Portland City Sewer System Revenue,
Series PA-169, P-Floats (FGIC Insured),
3.90%, 10/7/98 5,000
----------
23,010
----------
PENNSYLVANIA - 4.2%
4,000 Allegheny County Environmental
Improvement IDA, Series 1987, USX
Corp. Project, 3.65%, 10/1/98 4,000
3,700 Chester County IDA, Series 1997 A (AMT),
KAC III Realty Corp. Project (PNC Bank
LOC), 4.20%, 10/7/98 3,700
22,500 Delaware Valley Regional Finance Authority
VRDN, Series 1997 A, Merril Lynch P-Floats
(Midland Bank PLC LOC),
3.70%, 12/17/98 22,500
3,600 Pennsylvania Economic Development
Finance Authority IDR VRDN, Series
1996 A1-8 (AMT) (PNC Bank LOC),
4.20%, 10/7/98 3,600
6,700 Pennsylvania Higher Education Facilities
Authority Revenue Bond VRDN, Series I
(Allied Irish Bank PLC LOC),
4.50%, 11/1/98 6,703
9,900 Pennsylvania Intergovernmental Authority,
BTP-289, City of Philadelphia Funding
Program, 4.10%, 10/7/98 9,900
6,145 Philadelphia City IDA, Series 1998 A (AMT),
BTP-317, 4.16%, 10/7/98 6,145
14,000 Philadelphia City TRAN, Series A,
4.25%, 6/30/99 14,062
10,000 Philadelphia School District, Series
1998/99 B, TRAN (PNC Bank LOC),
4.25%, 6/30/99 10,045
2,125 Washington County IDA VRDN (AMT),
Accutrex Products, Inc. (Mellon Bank LOC),
4.30%, 10/7/98 2,125
----------
82,780
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SOUTH CAROLINA - 1.0%
$5,400 Cherokee County IDR VRDN, Series 1989
(AMT), Oshkosh Truck Corp. Project
(NationsBank LOC), 3.95%, 10/7/98 $ 5,400
Lexington County IDR VRDN, Allied-Signal
Project (Allied-Signal Corp. Gtd.)
200 Series 1992, 3.80%, 10/7/98 200
900 Series 1992 A, 3.80%, 10/7/98 900
5,000 Piedmont County Muni Power Agency,
4.25%, 10/1/98 5,000
4,241 South Carolina Jobs Economic
Development Authority (AMT), Greenville
YMCA Project (NationsBank LOC),
4.05%, 10/7/98 4,241
4,000 South Carolina Jobs Economic Development
Authority, Series 1998 (AMT), Virtual Image
Technology LLC (NationsBank LOC),
4.15%, 10/7/98 4,000
----------
19,741
----------
SOUTH DAKOTA - 0.7%
8,410 South Dakota Economic Development
Finance Authority VRDN, Series 1996 (AMT),
Hastings Filters, Inc. Project (Harris Trust &
Savings Bank LOC), 4.00%, 10/7/98 8,410
South Dakota Housing Development
Authority Homeowner Mortgage VRDN
(AMT), Merrill P-Floats
1,140 Series PA-119, 4.15%, 10/7/98 1,140
4,275 Series PT-73-A, 4.14%, 10/7/98 4,275
----------
13,825
----------
TENNESSEE - 2.8%
1,400 Clarksville Public Building Authority,
Tennessee Muni Bond Fund (NationsBank
LOC), Series 1995, 4.00%, 10/7/98 1,400
1,400 Dickson County IDR VRDN, Series 1996
(AMT), Tennessee Bun Co. LLC Project
(PNC Bank LOC), 4.20%, 10/7/98 1,400
6,000 Jackson City Waste Facility IDR VRDN,
Series 1995 (AMT), Florida Steel Corp.
Project (NationsBank LOC),
4.10%, 10/7/98 6,000
5,000 Memphis City G.O. VRDN, Series 1996
Soc Gen SGB-23, 4.17%, 10/7/98 5,000
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TENNESSEE - 2.8% (CONT'D.)
$ 3,000 Memphis City Health Education and
Housing Facility VRDN, Multifamily
Housing Wesely Housing Projects
(Barclays Bank LOC), 4.10%, 10/7/98 $ 3,000
1,500 Morristown City IDR VRDN, Series 1997,
BOS Automotive Products, Inc. (Bayerische
Vereinsbank LOC), 4.15%, 10/7/98 1,500
8,175 Nashville and Davidson Counties Electric
Revenue, Citicorp Eagle Trust,
4.07%, 10/7/98 8,175
5,000 Nashville and Davidson Counties
Housing VRDN (AMT), Old Hickory Towers
Project (FHLB LOC), 3.75%, 10/7/98 5,000
1,200 Nashville and Davidson Counties Health
and Education Facilities Board VRDN,
Series 1996-A, Adventist Health Systems
Sunbelt (SunTrust Bank LOC),
4.05%, 10/7/98 1,200
8,400 Shelby County G.O. Bond, Series 1996 B,
Soc Gen Trust SGB-21 (FSA Insured),
4.17%, 10/7/98 8,400
4,890 Shelby County G.O., Series B BTP-216,
3.70%, 10/22/98 4,890
1,000 Shelby County Health and Education
Authority (AMT), Arbor Lake Project
(PNC Bank LOC), 4.20%, 10/7/98 1,000
8,550 Tennessee State G.O. TOB,
Series 1997 BTP-242, 4.15%, 10/7/98 8,550
----------
55,515
----------
TEXAS - 14.9%
23,535 Arlington City Independent School District,
Series 17, Reset Option Certificates
(PSF Gtd.), 4.17%, 10/7/98 23,535
2,525 Austin City Independent School District
Building VRDN, Series 1996 SG-68 (PSF of
Texas Gtd.), 4.12%, 10/7/98 2,525
9,800 Bastrop Independent School District, Series
1997, Soc Gen Muni Security Trust SGB-37
(PSF Gtd.), 4.17%, 10/7/98 9,800
5,000 Calhoun County Navigation IDR VRDN
(AMT), Formosa Plastics Corp. U.S.A.
(Bank of America LOC), 3.60%, 10/7/98 5,000
3,100 Capital IDA, Gore & Associates, Inc.
Project (Morgan Guaranty Trust LOC),
3.50%, 11/17/98 3,100
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TEXAS - 14.9% (CONT'D.)
$ 6,500 Denton County Independent School
District G.O., Series B (PSF of Texas Gtd.),
3.90%, 8/15/99 $ 6,500
3,500 El Paso City Housing Finance Corp.
VRDN, Series 1993 (AMT), Viva Apartments
Project (General Electric Corp. LOC),
3.85%, 10/7/98 3,500
7,850 Galveston City Housing Finance Corp.
SFM (AMT), P Floats-PT-205 (Colld. by U.S.
Government Securities), 4.15%, 10/7/98 7,850
Greater Texas Student Loan Corp. (AMT)
(GTD Student Loans Insured) (SLMA LOC)
6,250 Series A, 3.70%, 2/1/99 6,250
15,000 Series A, 3.60%, 3/1/99 15,000
1,800 Gulf Coast Waste Disposal Authority
VRDN, Series 1994 (AMT), Amoco Oil Co.
Project (Amoco Oil Company Gtd.),
4.25%, 10/1/98 1,800
12,000 Harris County Floating Rate Receipts,
Series 1996, Criminal Justice Certificates
SG-96, 3.70%, 10/7/98 12,000
12,000 Harris County Toll Road, Unlimited
Tax Sub Lien, 3.85%, 10/7/98 12,000
4,500 Harris County Toll Road Unlimited
Tax Sub Lien CR138, 4.07%, 10/7/98 4,500
3,800 Harris County Toll Road Unlimited Tax
VRDN, Series 1994 A, Citicorp Eagle Trust
No. 954302, 4.12%, 10/7/98 3,800
3,425 Houston Independent School District,
Public Property Finance Contractual
Obligation, 4.50%, 7/15/99 3,447
3,300 Hurst, Euless and Bedford Independent
School Districts Floating Rate Receipts,
Series SG-98 (PSF Gtd.), 4.12%, 10/7/98 3,300
7,245 Pearland City Independent School District
G.O., Series 1997 SG-106 (PSF Gtd.),
4.12%, 10/7/98 7,245
17,600 Port of Corpus Christi Solid Waste Disposal
(AMT), Koch Refining Co. Project,
3.70%, 10/7/98 17,600
Port Development of Corpus Christi
Solid Waste Disposal VRDN (AMT),
Koch Refining Co. Project
9,750 Series 1996, 3.70%, 10/7/98 9,750
23,100 Series 1997, 3.70%, 10/7/98 23,100
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TEXAS - 14.9% (CONT'D.)
$33,880 Pooled Puttable Float Option (AMT),
PPT-7D (Backed by Various Housing
Agencies), 3.90%, 3/1/99 $ 33,880
2,600 Port of Houston Authority (AMT),
Unlimited Tax G.O. (FGIC Insured),
5.50%, 10/1/98 2,600
5,700 Port of Port Arthur Navigation District,
Series 1998 (AMT), Fina Oil & Chemical
Co. Project, 4.35%, 10/1/98 5,700
3,785 Port of Port Arthur Navigation District,
Series 1998 (AMT), Star Enterprise Project
(Bank of Montreal LOC), 3.75%, 10/7/98 3,785
9,000 Richardson City Independent School
District TRAN, 4.00%, 8/27/99 9,033
10,000 San Antonio City Electric and Gas System
Revenue, Merrill Lynch Trust Receipts
SG-105, 4.12%, 10/7/98 10,000
9,880 San Antonio City Electric and Gas
Revenue VRDN, Series 1997 SG-107,
4.12%, 10/7/98 9,880
11,210 Sherman Independent School District
G.O., Series 1985 A, SG-80 (PSF Gtd.),
4.12%, 10/7/98 11,210
6,500 Texas Department of Housing and
Community Affairs SFM, Series PA-128
(AMT), 4.15%, 10/7/98 6,500
5,700 Texas State TRAN, 4.25%, 10/1/98 5,700
10,000 Texas Water Development Board, Series A,
State Revolving Sr. Lien, 4.17%, 10/7/98 10,000
1,500 Trinity River IDA, ADP, Inc. Project (ADP,
Inc. Gtd.), 4.35%, 10/1/98 1,500
----------
291,390
----------
VIRGINIA - 2.5%
4,000 Botetourt County IDR VRDN (AMT),
Valley Forge Company Project (Harris
Trust & Savings Bank LOC),
4.05%, 10/7/98 4,000
2,000 Charles County Solid Waste Disposal
Facility IDR (AMT), Chambers
Development, Inc. Project (Morgan
Guaranty LOC), 3.70%, 10/7/98 2,000
9,400 Grant County Waste Disposal Revenue,
Series 1996 (AMT), Virginia Electric Power
Co. Project, 3.65%, 12/17/98 9,400
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
VIRGINIA - 2.5% (CONT'D.)
$ 4,200 Halifax County IDA VRDN, Series 1998
(AMT), D-Scan, Inc. Project (NationsBank
LOC), 4.10%, 10/7/98 $ 4,200
2,500 Louisa Town IDA, Virginia Electric Power
Co. Project, 3.50%, 11/30/98 2,500
12,300 Norfolk City G.O. VRDN, Citicorp Eagle
Trust No. 944601, 4.12%, 10/7/98 12,300
4,615 Virginia State G.O. VRDN, Series 1994,
Citicorp Eagle Trust No. 954601,
4.12%, 10/7/98 4,615
9,385 Virginia State HDA Series C (AMT),
Sub-Series C-1 BTP-196, 4.31%, 10/7/98 9,385
----------
48,400
----------
WASHINGTON - 4.7%
2,850 Algona Economic Development Corp.
(AMT), Peter Pan Seafoods Project (Seattle
First National Bank LOC),
3.75%, 10/7/98 2,850
5,700 Grandview City Public Corp. IDR, Series
1989 (AMT), Shonan USA Project (Bank
of America LOC), 4.05%, 10/7/98 5,700
1,800 Kent City Economic Development Corp.
IDR VRDN, Associated Grocers Project
(Seattle First National Bank LOC),
4.67%, 10/7/98 1,800
5,340 Seattle City Municipal Light and Power
Revenue, Series A, BTP-272,
3.70%, 10/23/98 5,340
Spokane County School District #081, G.O.
7,990 BTP-283, 3.65%, 3/18/99 7,990
6,040 BTP-284, 4.11%, 10/7/98 6,040
4,455 BTP-286, 3.65%, 3/18/99 4,455
3,500 Washington Public Power Supply Revenue,
Series 2, Project 2, 6.20%, 7/1/99 3,571
21,200 Washington Public Power Supply System,
Series 1994, Citicorp Eagle Trust,
4.17%, 10/7/98 21,200
17,519 Washington Public Power Supply System
Revenue, Series 1990 B, Nuclear Project
No. 2, Prerefunded BTP-85 (Colld. by U.S.
Government Securities), 3.80%, 10/15/98 17,519
5,035 Washington Public Power Supply System
Revenue, Series 1994 A, Nuclear Project
No. 2, BTP-61, 4.20%, 10/7/98 5,035
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
WASHINGTON - 4.7% (CONT'D.)
$ 9,575 Washington State G.O. Bonds,
BTP-Partnership BTP-125, 4.11%, 10/7/98 $ 9,575
535 Washington State Housing Finance
Commission VRDN, Series 5A-S (AMT),
Single Family Program, 3.90%, 12/15/98 535
----------
91,610
----------
WEST VIRGINIA - 0.4%
1,300 Brooke County IDR, Series 1997 (AMT),
Star-Kist Foods, Inc. Project (H.J. Heinz Co.
Gtd.), 4.20%, 10/7/98 1,300
Marion County Waste Disposal IDR VRDN
(AMT), Granttown Project (National
Westminster Bank LOC)
2,900 Series 1990 B, 3.65%, 10/7/98 2,900
2,500 Series 1990 C, 3.65%, 10/7/98 2,500
2,000 Ritchie County IDR VRDN (AMT),
Simonton Building Products, Inc. Project
(PNC Bank LOC), 4.20%, 10/7/98 2,000
----------
8,700
----------
WISCONSIN - 3.2%
3,125 Milwaukee City Redevelopment VRDN,
Series 1996 (AMT), Starline Manufacturing,
Inc. (Harris Trust & Savings Bank LOC),
4.05%, 10/7/98 3,125
4,290 Pewaukee City IDR VRDN, Series 1992
(AMT), HUSCO International, Inc. Project
(Bank One Wisconsin LOC),
3.80%, 10/7/98 4,290
10,500 Racine City Unified School District TRAN,
4.00%, 7/7/99 10,533
1,830 Wisconsin Health and Education Revenue
Bond, Series 1994 A, Sinai Samaritan
Medical Center Project (M&I Bank LOC),
4.05%, 10/7/98 1,830
1,445 Wisconsin Health and Education Revenue
Bond, Series 1997, Froedtert Memorial
Lutheran Hospital Trust (M&I Bank LOC),
4.05%, 10/7/98 1,445
5,000 Wisconsin Housing and Economic
Development Authority Revenue Floating
Rate Trust Receipts, Series 1997 FR/RI-18
(AMT), 3.95%, 10/7/98 5,000
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
WISCONSIN - 3.2% (CONT'D.)
$ 6,075 Wisconsin Housing and Economic
Development Authority Revenue,
Series B (AMT), Home Ownership
Revenue Program, 3.55%, 3/1/99 $ 6,075
11,730 Wisconsin Housing and Economic
Development Authority Revenue TOB
Home Ownership Revenue Program,
3.55%, 3/1/99 11,730
8,210 Wisconsin State G.O. Bond, Series
1996 A BTP-209, 3.90%, 10/22/98 8,210
10,370 Wisconsin State Reset Option Certificates
Series 16, 4.17%, 10/7/98 10,370
----------
62,608
----------
WYOMING - 0.5%
$10,710 Wyoming Community Development
Authority SFM, Series H (AMT),
BTP-198, 4.31%, 10/7/98 10,710
----------
Total Municipal Investments
(cost $1,952,935) 1,952,935
----------
NUMBER
OF SHARES
(000S)
- ---------
OTHER - 0.6%
586 AIM Tax Free Money Market Fund 586
300 Dreyfus Tax Exempt Cash
Management Fund 300
995 Federated Tax Free Trust Money Market
Fund No. 15 995
500 Federated Tax Free Trust
Money Market Fund No. 73 500
8,585 Provident Municipal Cash Fund (AMT) 8,585
339 Provident Municipal Fund 339
----------
Total Other
(cost $11,305) 11,305
----------
Total Investments - 100.1%
(cost $1,964,240) 1,964,240
Liabilities less Other Assets - (0.1)% (2,084)
----------
NET ASSETS - 100.0% $1,962,156
==========
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 102.8%
CALIFORNIA - 97.8%
$12,000 California Health Facility Authority Kaiser
Permanente IDR FRN, Morgan Stanley
Muni Trust, Series 1998-26 (FSA Insured),
4.07%, 10/7/98 $ 12,000
7,000 California HFA Home Mortgage Housing
Revenue Variable Rate Certificates,
Series 1998 R (AMT) (MBIA Insured),
3.50%, 8/20/99 7,000
1,765 California HFA Home Mortgage Revenue
Bonds, Series C (AMT), 3.55%, 2/1/99 1,765
4,975 California HFA Home Mortgage Revenue
Bonds, Series E (AMT), 3.55%, 3/12/99 4,975
1,275 California HFA Home Mortgage Revenue
FRN, Merrill P-Floats PT-14, Series 1993-B,
3.90%, 10/7/98 1,275
1,680 California HFA Housing Revenue FRN,
Merrill P-Floats PT-40D, 3.95%, 10/7/98 1,680
600 California HFA Housing Revenue FRN,
Merrill P-Floats, Series PT-56 (AMT),
3.95%, 10/7/98 600
2,900 California HFA Multi-Unit Housing
Revenue FRN, Series 92A CR-231
(MBIA Insured), 3.45%, 11/1/98 2,900
1,900 California Pollution Control Finance
Authority, Series 1997 A (AMT), ARCO
Project (Atlantic Richfield Co. Gtd.),
3.85%, 10/7/98 1,900
7,000 California Pollution Control Finance
Authority, Series 1997 B (AMT), Air
Products Manufacturing Co.,
(Air Products & Chemicals Corp. Gtd.),
3.85%, 10/7/98 7,000
300 California Pollution Control Finance
Authority, Series 1997 C (AMT), Pacific Gas
& Electric Co., (KBC Bank N.V. LOC),
4.10%, 10/1/98 300
3,600 California Pollution Control Finance
Authority, Series A, Pacific Gas & Electric
Co. (UBS AG LOC), 3.15%, 10/7/98 3,600
2,855 California State Department of Water
Resources and Sewer VRDN, ML/SG Muni
Trust, Series SG-5, Central Valley Project,
3.90%, 10/7/98 2,855
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 97.8% (CONT'D.)
$2,000 California State Economic Development
Finance Authority IDR Bond, Series 1998
(AMT) Lion Raisins Project (Bank of
America LOC), 4.00%, 10/7/98 $ 2,000
4,800 California State Economic Development
Finance Authority IDR FRN, Mercury Air
Group, Inc. Project (AMT) (BankBoston
NA LOC), 3.90%, 10/7/98 4,800
1,050 California State Economic Development
Finance Authority IDR VRDN, Series 1996,
Volk Enterprises, Inc., (Harris Bank Corp.
Gtd.), 3.65%, 10/7/98 1,050
California State G.O., Citibank TOB,
Series CR-152 (FGIC Insured),
1,500 Series 5027 C, 3.92%, 10/7/98 1,500
6,200 Series CR-152, 3.92%, 10/7/98 6,200
18,495 California State G.O. Bank of America
Variable Rate Certificate, Series 1997 H
(Colld. by U.S. Government Securities),
4.07%, 10/7/98 18,495
1,200 California State G.O., Weekly Option,
Series CR-153, 3.75%, 11/1/98 1,200
3,450 California State G.O. Weekly Put TOCR
(MBIA Insured), 3.65%, 10/7/98 3,450
4,200 California State Housing Revenue Bond,
Clipper Trust Certificates, Series 1996-6A
(AMT) (Colld. by FNMA Securities),
4.07%, 10/7/98 4,200
5,000 California State RAN, 3.15%, 6/30/99 5,031
3,000 California State Various Purpose G.O.
Bonds, Merrill Floating Rate Receipts SG-91
(FGIC Insured), 3.93%, 10/7/98 3,000
3,500 California Statewide Community
Development Authority IDR Bonds,
Series 1998 A (AMT), A & B Die Casting Co.
(Bank of America LOC), 4.00%, 10/7/98 3,500
8,700 California Statewide Community
Development Authority Multifamily Bond,
Series S (AMT), Concord Green Apartments
(FHLB of San Francisco LOC),
3.50%, 10/7/98 8,700
7,400 Chula Vista IDR Bond, Series 1996 B
(AMT), San Diego Gas & Electric Co.,
4.20%, 10/1/98 7,400
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 97.8% (CONT'D.)
$15,985 Contra Costa County Home Mortgage
Revenue Variable Rates Certificates,
Series 1997 C (Colld. by U.S. Government
Securities), 4.07%, 10/7/98 $ 15,985
3,000 Fontana Unified School District TRAN
1998-99, 4.00%, 7/9/99 3,007
1,200 Foothill/Eastern Transportation Corridor
Agency Toll Road Revenue Bonds, Series
1995 B (Morgan Guaranty Trust Co. LOC),
3.60%, 10/7/98 1,200
5,100 Irvine Ranch Consolidated Water Districts
2, 102, 103, & 206 Water and Sewer FRN,
Series 1993 B (Morgan Guaranty Trust Co.
LOC), 3.80%, 10/1/98 5,100
1,700 Kern County Public Facilities Project COP,
Series A (Union Bank of Switzerland LOC),
3.00%, 10/7/98 1,700
6,600 Livermore TRAN, Series 1997-98,
4.50%, 10/29/98 6,603
2,500 Los Angeles City Subordinated Tax
Allocation IDR FRN, BTP-129 (Colld. by
U.S. Government Securities),
3.90%, 10/8/98 2,500
1,700 Los Angeles City Multifamily Housing
Revenue Refunding Bond, Series 1995 D
(AMT), Coral Wood Court Project (AMT)
(Union Bank of California LOC),
3.60%, 10/7/98 1,700
7,705 Los Angeles City Unlimited G.O. FRN,
Series A (FGIC Insured) 4.02%, 10/7/98 7,705
1,025 Los Angeles Convention and Exhibition
Center Revenue VRDN, Merrill P-Floats,
Series 1993 PA-88 (MBIA Insured),
3.90%, 10/7/98 1,025
4,000 Metropolitan Water District of Southern
California CP, Series B, 3.20%, 12/10/98 4,000
9,280 Orange County Apartment Development
Housing Revenue FRN, Series 1992 B,
Aliso Creek Project (Wells Fargo & Co.
LOC), 4.00%, 10/7/98 9,280
2,800 Orange County Apartment Development
Housing Revenue FRN, Wood Canyon
Villas Issue B of 1991 (Bank of America
LOC), 3.15%, 10/7/98 2,800
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 97.8% (CONT'D.)
$ 1,020 Riverside County Multifamily Housing
Revenue FRN, Series A, Ambergate
Apartments (Union Bank of California
LOC), 3.85%, 10/7/98 $ 1,020
4,475 Riverside County Public Facilities Project
COP, Series B, (National Westminster PLC
LOC), 3.00%, 10/7/98 4,475
4,345 Riverside County School Finance Authority
RAN, Series A, 3.80%, 7/30/99 4,345
2,050 San Bernardino County Housing Authority
Revenue FRN, Series A, Brookside Meadows
Multifamily (Chase Manhattan Bank N.A.
LOC), 3.10%, 10/7/98 2,050
3,200 San Diego County Housing Revenue
Refunding VRDN, Series 1994 A, Country
Hills Apartments Phase II, (Colld. by FNMA
Securities), 3.00%, 10/7/98 3,200
3,000 San Francisco City and County Airport
Commission Intentional Airport Revenue
FRN, Susquehanna Structured Projects
SSP-4 (AMT) (AMBAC Insured),
3.80%, 10/7/98 3,000
2,975 San Francisco City and County Variable
Rate Certificates, Series 1996-AA6
(FGIC Insured), 4.02%, 10/7/98 2,975
4,630 San Marcos City Public Facility Authority
Revenue Bond, Series BTP-188, Civic
Center Projects (Colld. by U.S. Government
Securities), 3.60%, 3/25/99 4,630
845 Santa Clara County Housing Authority
Multifamily VRDN, Series A, Avenida
Espana Gardens (AMT) (Union Bank of
California LOC), 4.20%, 10/7/98 845
5,000 Regents of the University of California
Floating Rate Treasury Receipts, Series 13,
Multiple Purpose Projects (MBIA Insured),
3.80%, 10/7/98 5,000
4,390 Regents of University of California
Refunding Revenue Bonds, Series C,
ML/SG Muni Trust, SG-24
(AMBAC Insured), 3.90%, 10/7/98 4,390
10,000 Ventura County TRAN 1998-99,
3.60%, 12/9/98 10,000
3,000 Whittier Union High School District
TRAN, 4.25%, 6/30/99 3,014
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA MUNICIPAL MONEY MARKET FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 97.8% (CONT'D.)
$2,000 Yucaipa-Calimesa Joint Unified School
District TRAN 1998-99,
4.25%, 6/30/99 $ 2,006
----------
231,931
----------
PUERTO RICO - 5.0%
Government Development Bank for
Puerto Rico Tax-Exempt CP
4,000 3.15%, 10/15/98 4,000
1,200 3.00%, 10/30/98 1,200
4,740 Puerto Rico Commonwealth Highway
and Transportation Authority
Transportation Revenue Bond, Series A
(AMBAC Insured), 3.10%, 10/7/98 4,740
2,000 Puerto Rico Industrial Medical &
Environmental IDR Bond, Series 1983 A,
Merck & Co., Inc. (Merck & Co., Inc.
Gtd.), 4.00%, 12/1/98 2,001
----------
11,941
----------
Total Municipal Investments
(cost $243,872) 243,872
----------
NUMBER
OF SHARES
(000S)
- ---------
OTHER - 0.5%
484 Federated Tax-Exempt
Money Market Fund No. 80 484
558 Provident Institutional California
Money Fund 558
----------
Total Other
(cost $1,042) 1,042
----------
Total Investments - 103.3%
(cost $244,914) 244,914
Liabilities less Other Assets - (3.3)% (7,817)
----------
NET ASSETS - 100.0% $ 237,097
==========
See Notes to the Financial Statements.
<PAGE>
- --------------------
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1998 (UNAUDITED)
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
FLORIDA INT'L.
U.S. INTERMEDIATE INTERMEDIATE FIXED CALIFORNIA FIXED
AMOUNTS IN THOUSANDS, GOV'T. TAX-EXEMPT TAX-EXEMPT INCOME TAX-EXEMPT TAX-EXEMPT INCOME
EXCEPT PER SHARE DATA FUND FUND FUND FUND FUND FUND FUND
- ---------------------------------------------- -------- -------- -------- -------- -------- -------- --------
<C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at value (cost $248,500,
$307,458, $25,297, $218,266, $192,409,
$58,012 and $14,252, respectively) $257,323 $318,927 $26,160 $226,952 $203,285 $60,645 $15,101
Cash and foreign currencies - 1 - - 1 1 19
Income receivable 2,586 4,125 423 2,729 2,576 912 443
Receivable for securities sold - - - 5,850 - 750 49
Receivable for fund shares sold 150 123 85 234 7 - 1
Receivable from Adviser 4 4 1 4 3 4 2
Deferred organization costs, net of
accumulated amortization 7 11 - 6 8 - 4
Prepaid and other assets 18 9 8 15 14 5 8
- -----------------------------------------------------------------------------------------------------------------------------------
Total Assets 260,088 323,200 26,677 235,790 205,894 62,317 15,627
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Dividends payable 101 100 8 97 66 20 -
Payable for securities purchased - 1 - - 8,543 - -
Payable for fund shares redeemed 83 150 - 20 113 1,276 35
Accrued investment advisory fees 32 37 3 29 23 7 2
Accrued administration fees 18 24 2 13 13 3 1
Accrued custody and accounting fees - 1 1 - - 2 1
Accrued transfer agent fees 4 5 - 4 3 1 -
Accrued registration fees and
other liabilities 13 13 9 13 9 6 6
- -----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 251 331 23 176 8,770 1,315 45
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets $259,837 $322,869 $26,654 $235,614 $197,124 $61,002 $15,582
===================================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $246,879 $308,450 $25,352 $221,664 $182,801 $58,146 $14,651
Accumulated undistributed (distributions
in excess of) net investment income 79 58 - (42) (77) - 95
Accumulated net realized gains (losses)
on investments, forward foreign
currency contracts and foreign
currency transactions 4,056 2,892 439 5,306 3,524 223 (33)
Net unrealized appreciation on
investments 8,823 11,469 863 8,686 10,876 2,633 849
Net unrealized gains on translation
of assets and liabilities denominated
in foreign currencies - - - - - - 20
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets $259,837 $322,869 $26,654 $235,614 $197,124 $61,002 $15,582
===================================================================================================================================
SHARES OUTSTANDING ($.0001 PAR VALUE,
UNLIMITED AUTHORIZATION) 24,577 30,603 2,487 21,743 17,858 5,474 1,446
NET ASSET VALUE, REDEMPTION AND
OFFERING PRICE PER SHARE $10.57 $10.55 $10.72 $10.84 $11.04 $11.14 $10.78
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- ---------------------
STATEMENTS OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1998 (UNAUDITED)
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
FLORIDA INT'L.
U.S. INTERMEDIATE INTERMEDIATE FIXED CALIFORNIA FIXED
GOV'T. TAX-EXEMPT TAX-EXEMPT INCOME TAX-EXEMPT TAX-EXEMPT INCOME
AMOUNTS IN THOUSANDS FUND FUND FUND FUND FUND FUND<F2> FUND
- ---------------------------------------------- -------- -------- -------- -------- -------- -------- --------
<C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 7,115 $ 7,097 $ 587 $ 6,683 $ 4,566 $1,145 $ 432<F3>
EXPENSES:
Investment advisory fees 917 1,160 95 805 676 178 64
Administration fees 183 232 19 161 135 36 11
Transfer agent fees 122 155 13 107 90 24 7
Custody and accounting fees 38 47 24 36 35 24 37
Registration fees 13 20 5 16 10 5 4
Professional fees 10 11 8 10 9 8 8
Amortization of organization costs 7 12 - 5 7 - 3
Trustees' fees and expenses 3 4 1 3 3 1 1
Other 8 7 2 6 5 7 3
- -----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,301 1,648 167 1,149 970 283 138
Less voluntary waivers of:
Investment advisory fees - (78) (7) - (45) (12) -
Administration fees (104) (128) (10) (97) (77) (22) (6)
Less reimbursement of expenses
by Adviser (97) (128) (43) (86) (82) (47) (50)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Expenses 1,100 1,314 107 966 766 202 82
- -----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 6,015 5,783 480 5,717 3,800 943 350
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on:
Investments 3,106 1,455 205 5,031 1,370 208 33
Foreign currency transactions - - - - - - (159)
Net change in unrealized appreciation
on investments 6,023 4,192 409 3,743 4,026 1,814 1,235
Net change in unrealized gains on
translation of assets and liabilities
denominated in foreign currencies - - - - - - 28
- -----------------------------------------------------------------------------------------------------------------------------------
Net Gains on Investments 9,129 5,647 614 8,774 5,396 2,022 1,137
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $15,144 $11,430 $1,094 $14,491 $9,196 $2,965 $1,487
===================================================================================================================================
</TABLE>
<F2> Commenced investment operations on April 8, 1997.
<F3> Net of $2 in non-reclaimable foreign withholding taxes.
See Notes to the Financial Statements.
<PAGE>
- -----------------------
STATEMENTS OF CHANGES IN NET ASSETS
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
FLORIDA
INTERMEDIATE INTERMEDIATE
U.S. GOVERNMENT TAX-EXEMPT TAX-EXEMPT
FUND FUND FUND
------------------------- ------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1998 1998 1998 1998 1998 1998
AMOUNTS IN THOUSANDS (UNAUDITED) (UNAUDITED) (UNAUDITED)
- ----------------------------------------- ------------------------- ------------------------- -------------------------
<C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 6,015 $10,683 $ 5,783 $10,833 $ 480 $ 783
Net realized gains (losses) on investments,
forward foreign currency contracts and
foreign currency transactions 3,106 1,575 1,455 1,878 205 240
Net change in unrealized appreciation
(depreciation) on investments 6,023 4,821 4,192 6,039 409 538
Net change in unrealized gains on
translation of assets and liabilities
denominated in foreign currencies - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations 15,144 17,079 11,430 18,750 1,094 1,561
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 42,556 67,042 32,045 65,294 3,779 15,147
Shares from reinvestment of dividends 467 748 361 655 115 151
Shares redeemed (21,667) (26,587) (13,713) (39,967) (3,183) (5,548)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Capital Share
Transactions 21,356 41,203 18,693 25,982 711 9,750
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (6,015) (10,684) (5,783) (10,833) (480) (783)
From net realized gains - (167) - - - (6)
In excess of net investment income - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (6,015) (10,851) (5,783) (10,833) (480) (789)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 30,485 47,431 24,340 33,899 1,325 10,522
NET ASSETS:
Beginning of period 229,352 181,921 298,529 264,630 25,329 14,807
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $259,837 $229,352 $322,869 $298,529 $26,654 $25,329
===================================================================================================================================
ACCUMULATED UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT INCOME $79 $79 $58 $58 $- $-
===================================================================================================================================
</TABLE>
<PAGE>
NORTHERN FUNDS Semi-Annual Report
<TABLE>
<CAPTION>
FIXED CALIFORNIA
INCOME TAX-EXEMPT TAX-EXEMPT
FUND FUND FUND
------------------------- ------------------------- -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1998 1998 1998 1998 1998 1998<F2>
AMOUNTS IN THOUSANDS (UNAUDITED) (UNAUDITED) (UNAUDITED)
- ----------------------------------------- ------------------------- ------------------------- -------------------------
<C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income $ 5,717 $ 8,421 $ 3,800 $ 6,535 $ 943 $ 761
Net realized gains (losses) on investments,
forward foreign currency contracts and
foreign currency transactions 5,031 465 1,370 3,166 208 16
Net change in unrealized appreciation
(depreciation) on investments 3,743 6,956 4,026 4,567 1,814 819
Net change in unrealized gains on
translation of assets and liabilities
denominated in foreign currencies - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations 14,491 15,842 9,196 14,268 2,965 1,596
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 82,407 80,530 38,584 39,663 26,335 43,601
Shares from reinvestment of dividends 816 1,132 213 1,345 197 125
Shares redeemed (38,348) (29,639) (14,289) (16,734) (7,495) (4,617)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Capital Share
Transactions 44,875 52,023 24,508 24,274 19,037 39,109
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (5,669) (8,216) (3,800) (6,458) (943) (761)
From net realized gains - (86) - (1,159) - (1)
In excess of net investment income - (90) - (77) - -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (5,669) (8,392) (3,800) (7,694) (943) (762)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 53,697 59,473 29,904 30,848 21,059 39,943
NET ASSETS:
Beginning of period 181,917 122,444 167,220 136,372 39,943 -
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $235,614 $181,917 $197,124 $167,220 $61,002 $39,943
===================================================================================================================================
ACCUMULATED UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT INCOME $(42) $(90) $(77) $(77) $- $-
===================================================================================================================================
</TABLE>
NORTHERN FUNDS Semi-Annual Report
INTERNATIONAL
FIXED
INCOME
FUND
-------------------------
SIX MONTHS YEAR
ENDED ENDED
SEPT. 30, MAR. 31,
1998 1998
AMOUNTS IN THOUSANDS (UNAUDITED)
- ----------------------------------------- -------------------------
OPERATIONS:
Net investment income $ 350 $ 772
Net realized gains (losses) on investments,
forward foreign currency contracts and
foreign currency transactions (126) 79
Net change in unrealized appreciation
(depreciation) on investments 1,235 (139)
Net change in unrealized gains on
translation of assets and liabilities
denominated in foreign currencies 28 4
- -----------------------------------------------------------------------
Net Increase in Net Assets
Resulting from Operations 1,487 716
- -----------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 1,323 2,030
Shares from reinvestment of dividends 12 233
Shares redeemed (726) (4,701)
- -----------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Capital Share
Transactions 609 (2,438)
- -----------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (189) (824)
From net realized gains - (139)
In excess of net investment income - (66)
- -----------------------------------------------------------------------
Total Distributions Paid (189) (1,029)
-----------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,907 (2,751)
NET ASSETS:
Beginning of period 13,675 16,426
- -----------------------------------------------------------------------
End of period $15,582 $13,675
=======================================================================
ACCUMULATED UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT INCOME $95 $(66)
=======================================================================
<F2> For the period April 8, 1997 (commencement of operations) through
March 31, 1998.
See Notes to the Financial Statements.
<PAGE>
- --------------------
FINANCIAL HIGHLIGHTS
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
U.S. GOVERNMENT
FUND
------------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995
(UNAUDITED)
- ----------------------------------------- ------------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.20 $ 9.88 $10.06 $ 9.84 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.25 0.54 0.51 0.51 0.50
Net realized and unrealized gains (losses)
on investments, forward foreign currency
contracts and foreign currency transactions 0.37 0.32 (0.11) 0.29 (0.16)
- ------------------------------------------------------------------------------------------------------------------------------
Total Income from Investment Operations 0.62 0.86 0.40 0.80 0.34
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.25) (0.53) (0.51) (0.51) (0.50)
From net realized gains - (0.01) (0.05) (0.07) -
In excess of net realized gains - - (0.02) - -
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.25) (0.54) (0.58) (0.58) (0.50)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.57 $10.20 $ 9.88 $10.06 $ 9.84
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN<F3> 6.28% 8.90% 3.98% 7.65% 3.49%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $259,837 $229,352 $181,921 $149,062 $116,443
Ratio to average net assets of<F4>:
Expenses, after waivers and reimbursements 0.90% 0.90% 0.90% 0.90% 0.90%
Expenses, before waivers and reimbursements 1.06% 1.07% 1.09% 1.10% 1.12%
Net investment income, after waivers and
reimbursements 4.92% 5.24% 5.19% 5.07% 5.20%
Net investment income, before waivers
and reimbursements 4.76% 5.07% 5.00% 4.87% 4.98%
Portfolio Turnover Rate 72.08% 47.41% 83.41% 112.00% 42.29%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
NORTHERN FUNDS Semi-Annual Report
<TABLE>
<CAPTION>
INTERMEDIATE
TAX-EXEMPT
FUND
------------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995
(UNAUDITED)
- ----------------------------------------- ------------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.36 $10.07 $10.22 $10.03 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.19 0.40 0.40 0.41 0.40
Net realized and unrealized gains (losses)
on investments, forward foreign currency
contracts and foreign currency transactions 0.20 0.29 (0.06) 0.26 0.03
- ------------------------------------------------------------------------------------------------------------------------------
Total Income from Investment Operations 0.39 0.69 0.34 0.67 0.43
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.20) (0.40) (0.40) (0.41) (0.40)
From net realized gains - - (0.07) (0.07) -
In excess of net realized gains - - (0.02) - -
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.20) (0.40) (0.49) (0.48) (0.40)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.55 $10.36 $10.07 $10.22 $10.03
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN<F3> 3.74% 6.95% 3.39% 6.81% 4.38%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $322,869 $298,529 $264,630 $244,139 $221,251
Ratio to average net assets of<F4>:
Expenses, after waivers and reimbursements 0.85% 0.85% 0.85% 0.85% 0.85%
Expenses, before waivers and reimbursements 1.07% 1.07% 1.07% 1.08% 1.09%
Net investment income, after waivers and
reimbursements 3.74% 3.84% 3.90% 4.01% 4.09%
Net investment income, before waivers
and reimbursements 3.52% 3.62% 3.68% 3.78% 3.85%
Portfolio Turnover Rate 32.15% 61.83% 61.39% 137.85% 78.87%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
NORTHERN FUNDS Semi-Annual Report
<TABLE>
<CAPTION>
FLORIDA
INTERMEDIATE
TAX-EXEMPT
FUND
-----------------------------------------
SIX MONTHS YEAR YEAR
ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31,
1998 1998 1997<F2>
(UNAUDITED)
- ----------------------------------------- -----------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.47 $10.03 $10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.20 0.40 0.24
Net realized and unrealized gains (losses)
on investments, forward foreign currency
contracts and foreign currency transactions 0.25 0.44 0.03
- ------------------------------------------------------------------------------------------------
Total Income from Investment Operations 0.45 0.84 0.27
- ------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.20) (0.40) (0.24)
From net realized gains - - -
In excess of net realized gains - - -
- ------------------------------------------------------------------------------------------------
Total Distributions Paid (0.20) (0.40) (0.24)
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.72 $10.47 $10.03
- ------------------------------------------------------------------------------------------------
TOTAL RETURN<F3> 4.40% 8.51% 2.63%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $26,654 $25,329 $14,807
Ratio to average net assets of<F4>:
Expenses, after waivers and reimbursements 0.85% 0.85% 0.85%
Expenses, before waivers and reimbursements 1.32% 1.41% 2.31%
Net investment income, after waivers and
reimbursements 3.80% 3.86% 3.84%
Net investment income, before waivers
and reimbursements 3.33% 3.30% 2.38%
Portfolio Turnover Rate 30.26% 46.12% 50.77%
- ------------------------------------------------------------------------------------------------
</TABLE>
<F2> For the period August 15, 1996 (commencement of operations) through
March 31, 1997.
<F3> Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the period. Total return
is not annualized for periods less than one year.
<F4> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
- ---------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
FIXED INCOME FUNDS
<TABLE>
<CAPTION> FIXED
INCOME
FUND
------------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995
(UNAUDITED)
- ----------------------------------------- ------------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.42 $ 9.86 $10.10 $ 9.78 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.29 0.59 0.57 0.58 0.62
Net realized and unrealized gains (losses) on
investments, forward foreign currency
contracts and foreign currency transactions 0.41 0.56 (0.12) 0.50 (0.22)
- ------------------------------------------------------------------------------------------------------------------------------
Total Income from Investment Operations 0.70 1.15 0.45 1.08 0.40
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.28) (0.58) (0.56) (0.59) (0.62)
From net realized gains - (0.01) (0.10) (0.17) -
In excess of net investment income - - (0.01) - -
In excess of net realized gains - - (0.02) - -
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.28) (0.59) (0.69) (0.76) (0.62)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.84 $10.42 $ 9.86 $10.10 $ 9.78
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN<F3> 6.78% 11.90% 4.59% 11.18% 4.16%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $235,614 $181,917 $122,444 $101,339 $65,929
Ratio to average net assets of<F4>:
Expenses, after waivers and reimbursements 0.90% 0.90% 0.90% 0.90% 0.90%
Expenses, before waivers and reimbursements 1.07% 1.09% 1.12% 1.14% 1.18%
Net investment income, after waivers and
reimbursements 5.33% 5.71% 5.69% 5.79% 6.48%
Net investment income, before waivers
and reimbursements 5.16% 5.52% 5.47% 5.55% 6.20%
Portfolio Turnover Rate 43.88% 33.55% 87.64% 116.22% 55.27%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
NORTHERN FUNDS Semi-Annual Report
<TABLE>
<CAPTION>
TAX-EXEMPT
FUND
------------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995
(UNAUDITED)
- ----------------------------------------- ------------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.73 $10.24 $10.35 $10.08 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.23 0.47 0.50 0.48 0.48
Net realized and unrealized gains (losses) on
investments, forward foreign currency
contracts and foreign currency transactions 0.31 0.57 (0.06) 0.29 0.08
- ------------------------------------------------------------------------------------------------------------------------------
Total Income from Investment Operations 0.54 1.04 0.44 0.77 0.56
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.23) (0.47) (0.47) (0.48) (0.48)
From net realized gains - (0.08) (0.05) (0.02) -
In excess of net investment income - - (0.03) - -
In excess of net realized gains - - - - -
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.23) (0.55) (0.55) (0.50) (0.48)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.04 $10.73 $10.24 $10.35 $10.08
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN<F3> 5.07% 10.39% 4.32% 7.80% 5.78%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $197,124 $167,220 $136,372 $125,113 $118,690
Ratio to average net assets of<F4>:
Expenses, after waivers and reimbursements 0.85% 0.85% 0.85% 0.85% 0.85%
Expenses, before waivers and reimbursements 1.08% 1.09% 1.10% 1.10% 1.11%
Net investment income, after waivers and
reimbursements 4.22% 4.42% 4.61% 4.62% 4.95%
Net investment income, before waivers
and reimbursements 3.99% 4.18% 4.36% 4.37% 4.69%
Portfolio Turnover Rate 46.72% 74.32% 8.10% 60.50% 54.94%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
NORTHERN FUNDS Semi-Annual Report
<TABLE>
<CAPTION>
CALIFORNIA
TAX-EXEMPT
FUND
---------------------------
SIX MONTHS YEAR
ENDED ENDED
SEPT. 30, MAR. 31,
1998 1998<F2>
(UNAUDITED)
- ------------------------------------------ ---------------------------
SELECTED PER SHARE DATA
<C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.76 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.22 0.41
Net realized and unrealized gains (losses) on
investments, forward foreign currency
contracts and foreign currency transactions 0.38 0.76
- ---------------------------------------------------------------------------------
Total Income from Investment Operations 0.60 1.17
- ---------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.22) (0.41)
From net realized gains - -
In excess of net investment income - -
In excess of net realized gains - -
- ---------------------------------------------------------------------------------
Total Distributions Paid (0.22) (0.41)
- ---------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.14 $10.76
- ---------------------------------------------------------------------------------
TOTAL RETURN<F3> 5.64% 11.86%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $61,002 $39,943
Ratio to average net assets of<F4>:
Expenses, after waivers and reimbursements 0.85% 0.85%
Expenses, before waivers and reimbursements 1.19% 1.60%
Net investment income, after waivers and
reimbursements 3.98% 4.01%
Net investment income, before waivers
and reimbursements 3.64% 3.26%
Portfolio Turnover Rate 27.12% 22.22%
- ---------------------------------------------------------------------------------
</TABLE>
<F2> For the period April 8, 1997 (commencement of operations) through
March 31, 1998.
<F3> Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the period. Total return
is not annualized for periods less than one year.
<F4> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
- ---------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
FIXED INCOME FUNDS
<TABLE>
<CAPTION>
INTERNATIONAL
FIXED
INCOME
FUND
------------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995
(UNAUDITED)
- ----------------------------------------- ------------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.85 $10.08 $10.62 $10.64 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.24 0.43 0.56 0.78 0.58
Net realized and unrealized gains (losses) on
investments, forward foreign currency
contracts and foreign currency transactions 0.82 0.02 (0.40) (0.16) 0.64
- ------------------------------------------------------------------------------------------------------------------------------
Total Income from Investment Operations 1.06 0.45 0.16 0.62 1.22
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.13) (0.59) (0.58) (0.62) (0.56)
From net realized gains - (0.09) (0.11) (0.02) -
In excess of net investment income - - - - (0.02)
In excess of net realized gains - - (0.01) - -
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.13) (0.68) (0.70) (0.64) (0.58)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.78 $9.85 $10.08 $10.62 $10.64
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN<F3> 10.71% 4.61% 1.39% 5.84% 12.77%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $15,582 $13,675 $16,426 $15,665 $13,028
Ratio to average net assets of<F4>:
Expenses, after waivers and reimbursements 1.15% 1.15% 1.15% 1.15% 1.15%
Expenses, before waivers and reimbursements 1.93% 1.87% 1.96% 2.00% 2.42%
Net investment income, after waivers and
reimbursements 4.89% 4.98% 5.49% 5.75% 5.96%
Net investment income, before waivers
and reimbursements 4.11% 4.26% 4.68% 4.90% 4.69%
Portfolio Turnover Rate 4.74% 30.26% 37.76% 52.05% 43.24%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F3> Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the period. Total return
is not annualized for periods less than one year.
<F4> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
U.S. GOVERNMENT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 65.3%
FANNIE MAE - 9.3%
$12,000 5.625%, 3/15/01 $ 12,289
11,750 5.25%, 1/15/03 11,998
----------
24,287
----------
FANNIE MAE REMIC TRUST - 13.2%
5,790 Series 1996-M7, Class A,
6.52%, 9/17/04 5,987
351 Series 1991-37, Class G,
8.15%, 8/25/05 351
10,000 Series 1997-M5, Class C,
6.74%, 8/25/07 11,123
11,250 Series 1998-24, Class QB,
6.00%, 9/18/12 11,433
2,434 Series 1996-M4, Class A,
7.75%, 3/17/17 2,547
2,499 Series 1992-200, Class E,
6.25%, 6/25/17 2,504
----------
33,945
----------
FEDERAL HOME LOAN BANK - 9.4%
24,000 5.50%, 7/14/00 24,307
----------
FREDDIE MAC - 6.1%
200 Series 1033, Class F,
8.00%, 5/15/05 200
101 Series 1614, Class E,
5.20%, 4/15/15 101
2,184 Series 1379, Class EA,
6.00%, 5/15/16 2,188
12,000 Series 2080, Class PE,
6.00%, 11/15/21 12,356
916 Pool #410092,
7.645%, 11/1/24 941
----------
15,786
----------
FREDDIE MAC MTN - 17.8%
12,000 5.75%, 7/15/03 12,525
32,000 5.75%, 4/15/08 33,830
----------
46,355
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 8.0%
$142 Pool #268360, 10.00%, 4/15/19 $ 155
187 Pool #270288, 10.00%, 6/15/19 204
51 Pool #270297, 10.00%, 6/15/19 55
91 Pool #302836, 10.00%, 2/15/21 99
19,936 Pool #484205, 6.50%, 9/15/28 20,378
----------
20,891
----------
TENNESSEE VALLEY AUTHORITY - 1.5%
3,700 Series B, Putable 7/15/01,
6.235%, 7/15/45 3,996
----------
Total U.S. Government Agencies
(cost $163,260) 169,567
----------
U.S. GOVERNMENT
OBLIGATIONS - 23.5%
U.S. TREASURY BOND - 10.6%
23,650 7.50%, 2/15/05 27,663
----------
U.S. TREASURY NOTES - 12.9%
17,750 7.75%, 1/31/00 18,477
11,175 6.625%, 6/30/01 11,814
2,940 6.625%, 7/31/01 3,113
----------
33,404
----------
Total U.S. Government Obligations
(cost $58,551) 61,067
----------
SHORT-TERM INVESTMENT - 10.3%
26,689 FHLB Discount Note,
5.40%, 10/1/98
(cost $26,689) 26,689
----------
Total Investments - 99.1%
(cost $248,500) 257,323
Other Assets less Liabilities - 0.9% 2,514
----------
NET ASSETS - 100.0% $ 259,837
==========
See Notes to the Financial Statements.
<PAGE>
- ---------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERMEDIATE TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 98.5%
ALABAMA - 0.1%
$310 Birmingham City Public Building
Authority Revenue Refunding Bond,
7.00%, 1/15/00 $ 323
----------
ALASKA - 2.4%
North Slope Borough Capital Appreciation
G.O. Refunding Bond (MBIA Insured)
2,000 Series B, 0.00%, 6/30/00 1,873
4,400 Series A, 0.00%, 6/30/01 3,964
2,000 Series B, 0.00%, 6/30/01 1,802
----------
7,639
----------
ARIZONA - 2.4%
2,000 Maricopa County Unified School District
No. 11 Peoria G.O. Bond, 5.60%, 7/1/07 2,178
5,000 Mesa City Project of 1987 G.O. Bond
(MBIA Insured), Prerefunded,
5.70%, 7/1/08 5,472
----------
7,650
----------
CALIFORNIA - 4.2%
2,000 California State Health Facilities Financing
Authority Revenue Bond, Series C
(FSA Insured), Sutter Health Project,
5.00%, 8/15/17 2,032
5,500 California Statewide Communities
Development Authority Revenue
Refunding Bond, Series A-2,
Irvine Apartment Communities,
4.90%, Mandatory Put, 5/15/08 5,640
1,000 Foothill/Eastern Transportation Corridor
Agency Toll Road Senior Lien Revenue
Bond, Series A, 0.00%, 1/1/05 758
2,860 Los Angeles County COP, Correctional
Facility Project (MBIA Insured),
Prerefunded, 6.50%, 9/1/00 3,079
2,000 San Diego CTFS Water Utility Fund - Net
System Revenue Bond (FGIC Insured),
5.375%, 8/1/12 2,182
----------
13,691
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
COLORADO - 3.8%
$2,500 Arapahoe County School District No. 5
Cherry Creek G.O. Refunding Bond,
Series A, 5.25%, 12/15/04 $ 2,668
Denver City Metropolitan Major League
Baseball Stadium District Sales
TRB (FGIC Insured)
310 4.15%, 10/1/00 313
2,025 6.00%, 10/1/00 2,118
5,750 Jefferson County School District
No. R-001 G.O. Bond (FGIC Insured),
Series A, 6.00%, 12/15/05 6,487
610 Metropolitan Wastewater Reclamation
District Gross Revenue Refunding Bond,
Series B (MBIA Insured), 6.75%, 4/1/03 683
----------
12,269
----------
FLORIDA - 11.3%
Broward County School District G.O. Bond
380 6.75%, 2/15/00 392
1,000 6.00%, 2/15/06 1,083
3,375 Dade County Water and Sewer System
Revenue Bond (FGIC Insured),
6.25%, 10/1/06 3,898
1,750 Florida State Board of Education
Capital Outlay G.O. Bond,
5.50%, 1/1/03 1,869
3,195 Florida State Dade County Road G.O.
Refunding Bond, 5.00%, 7/1/10 3,333
Florida State Division of Bond Financing
Department General Recreational Facilities
Improvement Department of Environ-
mental Protection Revenue Bond,
PRSV 2000-A (AMBAC Insured)
2,270 5.50%, 7/1/06 2,495
3,000 5.50%, 7/1/07 3,287
2,000 Florida State Department of Environmental
Protection Revenue Bond, PRSV 2000-B
(FSA Insured), 5.00%, 7/1/01 2,072
9,000 Inland Protection Financing Corp. S.O.
Revenue Bond (FSA Insured),
5.00%, 7/1/00 9,215
Jacksonville Electric Authority Revenue
Refunding Bond, St. John's River Power
System
1,530 Series 6-C, 6.40%, 10/1/00 1,612
1,500 6.50%, 10/1/01 1,602
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
FLORIDA - 11.3% (CONT'D.)
$5,000 Venice City Health Facilities Revenue
Bond, Venice Hospital, Inc. Project,
Prerefunded, 6.00%, 12/1/04 $ 5,661
----------
36,519
----------
GEORGIA - 6.6%
Atlanta City Airport Facilities Revenue
Refunding Bond (AMBAC Insured)
1,200 5.50%, 1/1/01 1,247
3,500 6.00%, 1/1/02 3,738
2,500 6.00%, 1/1/04 2,751
Clarke County School District
G.O. Bond (FSA Insured)
2,150 4.55%, 3/1/00 2,179
2,000 4.75%, 3/1/02 2,065
1,850 Cobb County School District G.O. Bond,
5.00%, 2/1/03 1,940
2,000 Cobb-Marietta Coliseum and Exhibition
Hall Authority Revenue Bond (MBIA
Insured), Prerefunded, 6.75%, 10/1/01 2,211
870 Gwinnett County Water and Sewer
Authority Revenue Refunding and
Improvement Bond, Escrowed to Maturity,
8.20%, 8/1/99 912
Municipal Electric Authority of Georgia
General Resolution Project Revenue
Bond (MBIA Insured)
2,075 Series G, 5.00%, 1/1/00 2,111
1,000 Series A, 6.00%, 1/1/07 1,134
1,000 Municipal Electric Authority of Georgia
Project, Series B (MBIA Insured),
5.00%, 1/1/02 1,037
----------
21,325
----------
ILLINOIS - 4.9%
3,000 Chicago City G.O. Bond (AMBAC Insured),
5.90%, 1/1/09 3,322
1,000 Chicago City Wastewater Transmission
Revenue Bond (FGIC Insured), Prerefunded,
6.30%, 1/1/03 1,113
Illinois State Development Financing
Authority Economic Development Revenue
Bond, Latin School of Chicago Project
500 5.60%, 8/1/18 512
1,000 5.65%, 8/1/28 1,023
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ILLINOIS - 4.9% (CONT'D.)
$2,805 Illinois State Educational Facilities
Authority Revenue Bond, Series A,
Art Institute Project,
4.65%, Mandatory Put, 3/1/05 $ 2,863
1,750 Illinois State Educational Facilities
Authority Revenue Bond, Reserve 3,
4.75%, Mandatory Put, 3/1/07 1,806
3,000 Illinois Educational Facilities Authority
Revenue Bond, Series B, University of
Chicago, 4.40%, Mandatory Put, 7/1/04 3,044
2,530 Illinois State Capital Appreciation
Revenue Bond, School District PG-304
Project (FSA Insured), 0.00%, 1/1/07 1,791
310 McLean County Public Building
Commission Revenue Bond, Law and
Justice Center Project, 7.10%, 11/1/00 331
----------
15,805
----------
INDIANA - 0.5%
1,500 Tippecanoe County School
Building Revenue Bond (MBIA Insured),
5.50%, 7/15/01 1,566
----------
KANSAS - 2.1%
Burlington Environmental Improvement
Revenue Bond, Kansas City Power and
Light Co. Project
2,000 Series C, 4.50%, Mandatory Put, 9/1/03 2,022
3,000 Series D, 4.35%, Mandatory Put, 9/1/01 3,029
1,700 Kansas City G.O. Refunding Bond,
Series A (MBIA Insured), 5.20%, 9/1/06 1,825
----------
6,876
----------
KENTUCKY - 2.2%
1,380 Kentucky Economic Finance Authority
Revenue Bond, Series A, Catholic Health
Project, 5.50%, 12/1/05 1,504
3,500 Kentucky State Property and Buildings
Commission Revenue Refunding Bond,
Project No. 59, 5.00%, 11/1/01 3,630
2,000 Kentucky State Turnpike Authority
Economic Development Road Revenue
Refunding Bond, Revitalization Project,
5.50%, 1/1/01 2,075
----------
7,209
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
LOUISIANA - 0.8%
$2,350 Louisiana State G.O. Refunding Bond,
Series A, 5.00%, 4/15/02 $ 2,441
----------
MARYLAND - 0.5%
1,650 Maryland State and Local Facilities
G.O. Bond, 4.30%, 7/15/03 1,690
----------
MASSACHUSETTS - 3.9%
Massachusetts State Health and
Educational Facilities Authority Revenue
Bond, Series A (MBIA Insured),
Caregroup, Inc.
1,735 5.00%, 7/1/05 1,832
3,000 4.75%, 7/1/12 3,011
2,625 Massachusetts State Municipal Wholesale
Electric Company and Power Supply
System Revenue Bond (AMBAC Insured),
5.10%, 7/1/07 2,824
Massachusetts State Water Reserve
Authority General Revenue Bond, Series A
2,500 7.25%, 4/1/01 2,672
2,000 Prerefunded, 6.50%, 7/15/02 2,229
----------
12,568
----------
MICHIGAN - 0.9%
2,925 Detroit City G.O. Bond, Series A,
Self-Insurance Project, 5.60%, 5/1/01 3,042
----------
MISSISSIPPI - 0.9%
600 Mississippi State G.O. Bond, Series E,
5.00%, 9/1/02 628
2,000 Mississippi State G.O. Refunding Bond,
6.05%, 8/15/03 2,197
----------
2,825
----------
NEBRASKA - 0.3%
1,000 Nebraska State Public Power District
Supply System Revenue Bond, Series B,
4.80%, 1/1/03 1,036
----------
NEVADA - 0.1%
310 Nevada State Bank Municipal
G.O. Bond, Project No. 3-C, Escrowed
to Maturity, 7.625%, 5/1/01 336
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NEW HAMPSHIRE - 0.2%
$620 Manchester City G.O. Refunding Bond,
Series B, 4.70%, 7/1/01 $ 637
----------
NEW JERSEY - 1.2%
3,500 New Jersey State G.O. Bond, Series E,
5.00%, 7/15/04 3,714
----------
NEW MEXICO - 0.5%
610 Bernalillo County G.O. Bond,
3.875%, 8/1/03 612
1,000 Santa Fe City Revenue Bond,
Series A (AMBAC Insured),
Prerefunded, 6.30%, 6/1/04 1,123
----------
1,735
----------
NEW YORK - 14.9%
3,735 Middletown City School District G.O.
Bond (FGIC Insured), 4.75%, 11/1/00 3,824
2,730 New York City G.O. Bond, Series C-1
(AMBAC Insured), Prerefunded,
6.40%, 8/1/02 3,028
2,000 New York City G.O. Bond, Series C-1
(MBIA Insured), Prerefunded,
6.375%, 8/1/02 2,216
8,405 New York City G.O. Bond, Series G,
5.00%, 8/1/04 8,816
7,115 New York City Municipal Assistance Corp.
Revenue Bonds, Series E, 4.70%, 7/1/02 7,354
New York City Transitional Financing
Authority Future Tax Secured Revenue
Bond
5,200 5.00%, 8/1/05 5,473
1,005 Series B, 4.75%, 11/15/14 1,005
4,795 New York City Transitional Financing
Authority Future Tax Secured Revenue
Bond, Series B (FGIC Insured),
4.75%, 11/15/13 4,846
1,000 New York City Unlimited G.O. Bond,
Series A, 4.75%, 8/1/03 1,033
New York State Dormitory Authority
Revenue Refunding Bond, Series A
2,500 5.40%, 5/15/02 2,629
2,500 5.50%, 5/15/03 2,664
New York State G.O. Refunding Bond
2,500 6.625%, 8/1/01 2,695
1,000 Series C, 6.00%, 10/1/06 1,127
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NEW YORK - 14.9% (CONT'D.)
$1,250 New York State Urban Development
Corp. Sub Lien Revenue Bond,
5.50%, 7/1/16 $ 1,309
----------
48,019
----------
NORTH CAROLINA - 3.2%
2,000 North Carolina State G.O. Bond,
4.75%, 4/1/04 2,099
1,000 North Carolina State Health Care
Facilities Revenue Bond, Series A, Duke
University Health System, 4.40%, 6/1/07 1,017
7,500 North Carolina State Hospital Revenue
Bond, Series A, Pitt County Memorial
Hospital, 4.75%, 12/1/28 7,164
----------
10,280
----------
OKLAHOMA - 1.0%
2,850 Grand River Dam Authority Revenue
Refunding Bond (MBIA Insured),
5.70%, 6/1/05 3,147
----------
OREGON - 1.6%
540 Clackamas and Washington Counties
School District No. 003 G.O. Bond,
7.00%, 8/1/02 602
Washington County School District
No. 48J G.O. Bond
850 Series B, 4.10%, 9/1/02 863
3,445 5.00%, 8/1/06 3,689
----------
5,154
----------
PENNSYLVANIA - 4.0%
3,000 Pennsylvania State Intergovernmental
Authority Special TRB (FGIC Insured),
Escrowed to Maturity, 6.00%, 6/15/02 3,188
1,000 Pennsylvania State Unlimited G.O.
Refunding Bond (AMBAC Insured),
5.125%, 9/15/02 1,051
2,630 Philadelphia City Hospitals and Higher
Education Facilities Revenue Bond, Series A,
Jefferson Health System (MBIA Insured),
5.25%, 5/15/11 2,791
3,300 Philadelphia City Intergovernmental
Funding Special TRB (FGIC Insured),
Prerefunded, 6.75%, 6/15/05 3,848
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
PENNSYLVANIA - 4.0% (CONT'D.)
$1,910 St. Mary Hospital Authority Revenue
Bond, Series A, Bucks County Catholic
Health Initiatives, 5.00%, 12/1/05 $ 2,023
----------
12,901
----------
PUERTO RICO - 1.3%
4,000 Puerto Rico Commonwealth Public
Improvement G.O. Refunding Bond,
5.00%, 7/1/05 4,227
----------
SOUTH CAROLINA - 2.4%
3,500 Columbia Waterworks and Sewer System
Capital Appreciation Revenue Bond,
0.00%, 2/1/03 2,972
South Carolina State Public Service
Authority Revenue Refunding Bond,
Series B (FGIC Insured)
2,650 6.50%, 1/1/04 2,973
1,700 6.50%, 1/1/05 1,938
----------
7,883
----------
TENNESSEE - 2.9%
Memphis City Electric System Revenue
Refunding Bond
5,000 5.625%, 1/1/02 5,286
2,000 5.80%, 1/1/03 2,156
1,870 Nashville and Davidson Counties
Metropolitan Government G.O. Bond,
4.50%, 5/15/02 1,919
----------
9,361
----------
TEXAS - 6.1%
2,570 Carrollton Farmers Branch Independent
School District G.O. Bond (PSF Insured),
5.00%, 2/15/10 2,693
2,000 El Paso City Independent School District
Capital Appreciation G.O. Bond (PSF
Insured), 0.00%, 2/15/02 1,758
7,450 Harris County Revenue Refunding Senior
Sub Lien Toll Road Bond (AMBAC Insured),
4.95%, 8/15/06 7,924
2,955 Houston Independent School District
Capital Appreciation Revenue Bond, Series B
(AMBAC Insured), West Side Project,
0.00%, 9/15/01 2,641
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TEXAS - 6.1% (CONT'D.)
$165 San Antonio Electric and Gas Revenue
Refunding Bond, 7.00%, 2/1/01 $ 169
1,035 Texas Municipal Power Agency Revenue
Refunding Bond (MBIA Insured),
5.75%, 9/1/02 1,108
3,320 Texas State University Systems Revenue
Refunding Bond, Series B (FSA Insured),
4.625%, 3/15/10 3,372
----------
19,665
----------
UTAH - 4.3%
11,000 Utah State G.O. Bond, Series A,
5.00%, 7/1/06 11,795
2,000 Utah State Intermountain Power Agency
Power Supply Revenue Refunding Bond,
Series D, 5.00%, 7/1/21 1,978
----------
13,773
----------
VIRGINIA - 2.2%
3,250 Arlington County G.O. Bond,
5.80%, 12/1/02 3,514
3,230 Virginia State G.O. Bond,
5.375%, 6/1/05 3,519
----------
7,033
----------
WASHINGTON - 2.3%
550 Kitsap County School District No. 401
G.O. Bond, Series A, 6.05%, 12/1/00 577
310 Pierce County School District No. 003
Puyallup G.O. Bond, Series A,
7.75%, 12/1/01 346
310 Pierce Fife County School District No. 417
G.O. Bond, Series A, 7.85%, 12/1/01 347
450 Seattle Limited Tax G.O. Bond,
7.00%, 3/1/01 484
500 Snohomish County School District
No. 015 Edmonds G.O. Bond,
7.00%, 12/1/01 547
5,000 Washington State Public Power Supply
System Nuclear Project No. 2 Revenue
Bond, Series A, 5.00%, 7/1/03 5,205
----------
7,506
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
WISCONSIN - 2.5%
$1,850 Milwaukee County Unlimited G.O. Bond,
Series A (MBIA Insured), 5.25%, 10/1/01 $ 1,932
4,415 Wisconsin State G.O. Refunding Bond,
Series 3, 6.125%, 11/1/06 5,057
1,000 Wisconsin State Health and Educational
Facilities Authority Revenue Bond,
Children's Hospital of Wisconsin, Inc.
(AMBAC Insured), 5.625%, 2/15/12 1,103
----------
8,092
----------
Total Municipal Investments
(cost $306,468) 317,937
----------
NUMBER
OF SHARES
(000S)
- ---------
SHORT-TERM INVESTMENTS - 0.3%
34 AIM Tax Free Cash Reserve Fund 34
956 Provident Municipal Fund 956
----------
Total Short-Term Investments
(cost $990) 990
----------
Total Investments - 98.8%
(cost $307,458) 318,927
Other Assets less Liabilities - 1.2% 3,942
----------
NET ASSETS - 100.0% $ 322,869
==========
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
FLORIDA INTERMEDIATE TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 96.5%
FLORIDA - 96.5%
$200 Broward County School District G.O.
Bond, Series 1988, 7.00%, 2/15/99 $ 203
100 Charlotte County Utility Systems
Revenue Refunding Bond, Series 1994
(FGIC Insured), 5.50%, 10/1/00 104
1,695 Dade County G.O. Bond (FGIC Insured),
5.13%, 11/1/17 1,759
225 Dade County Public Service Tax Revenue
Refunding Bond (FSA Insured),
5.00%, 10/1/01 234
500 Dade County Sales TRB (AMBAC Insured),
6.00%, 10/1/01 533
2,000 Dade County School District G.O.
Unlimited Tax Bond (MBIA Insured),
5.00%, 2/15/11 2,099
400 Dade County Seaport Revenue
Refunding Bond (MBIA Insured),
6.50%, 10/1/10 484
150 Duval County School District G.O.
Bond, Series 1992 (AMBAC Insured),
6.13%, 8/1/04 163
1,150 Florida State Board of Education
Capital Outlay Revenue Bond,
Series 1989 A, Prerefunded, 7.25%, 6/1/00 1,240
Florida State Board of Education Capital
Outlay Revenue Bond
100 Series 1992 B, 5.30%, 6/1/03 106
1,440 Series 1998 A, 5.25%, 1/1/08 1,539
1,000 Florida State Board of Education
Capital Outlay Revenue Bond, Series 1987 C,
Escrowed to Maturity, 6.00%, 5/1/03 1,076
500 Florida State Department of
Transportation Right of Way Revenue
Refunding Bond, 6.00%, 7/1/04 556
1,250 Florida State Finance Department
General Services Revenue Bond, Series A
(FSA Insured), 5.50%, 7/1/09 1,396
750 Florida State Finance Department General
Services Revenue Bond, Series A
(MBIA Insured), 5.25%, 7/1/10 805
200 Florida State Municipal Power Agency
Revenue Bond, Power Supply Project
(AMBAC Insured), Prerefunded,
6.25%, 10/1/01 218
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
FLORIDA - 96.5% (CONT'D.)
$350 Florida State Municipal Power Agency
Revenue Bond, St. Lucie Project
(FGIC Insured), 5.40%, 10/1/05 $ 375
250 Florida State Sunshine Skyway
Revenue Refunding Bond, Series 1991,
6.40%, 7/1/04 269
1,000 Gainesville City Utility Systems
Revenue Refunding Bond,
Series 1979 A, 6.20%, 10/1/02 1,058
500 Hillsborough County Aviation Authority
Revenue Bond (FGIC Insured),
6.60%, 10/1/03 525
500 Inland Protection Financing Corp. S.O.
Revenue Bond (FSA Insured),
5.00%, 7/1/00 512
500 Jacksonville City Health Facilities Authority
Revenue Bond, Series A (MBIA Insured),
Charity Obligation Group Project,
5.00%, 8/15/11 525
700 Jacksonville Electric Authority Revenue
Refunding Bond, Series 16, St. John River
Issue 2, 5.00%, 10/1/03 737
450 Kissimmee City Suburban Water
and Sewer System Revenue Refunding
Bond (AMBAC Insured), 5.75%, 10/1/01 476
100 Kissimmee City Utility Authority
Electric System Revenue Refunding
Bond, Series 1991 (FGIC Insured),
Prerefunded, 6.50%, 10/1/01 110
370 Lee County Refunding Bond, Series A
(MBIA Insured), 5.75%, 10/1/11 422
500 Manatee County Public Utilities Revenue
Bond, Series 1991 A (MBIA Insured),
Prerefunded, 6.75%, 10/1/01 553
1,000 Manatee County School Boards COP,
(MBIA Insured), Series A, 4.85%, 7/1/12 1,023
100 Miami City G.O. Bond, Series 1992
(FGIC Insured), 5.90%, 12/1/07 114
1,000 Miami-Dade County S.O. Refunding
Subordinate Bond, Series 1997 A
(MBIA Insured), 0.00%, 10/1/14 462
200 Orange County Tourist Development TRB,
Series 1992 B (AMBAC Insured),
5.90%, 10/1/00 209
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
FLORIDA INTERMEDIATE TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
FLORIDA - 96.5% (CONT'D.)
Orlando City Utilities Commission Water
and Electric Revenue Refunding Bond
$100 Series 1992, 5.75%, 10/1/05 $ 111
1,000 Series 1992, 5.90%, 10/1/08 1,147
1,000 Osceola County Capital Improvements
Revenue Refunding Bond
(MBIA Insured), 4.00%, 9/1/01 1,011
900 Polk County Utility System Revenue
Refunding Bond (FGIC Insured),
5.00%, 10/1/10 952
250 Reedy Creek Improvement District
Refunding Bond, Series 1991 A,
6.00%, 6/1/02 266
400 Santa Rosa Bay Bridge Authority
Capital Appreciation Bond,
Series 1996 A, 0.00%, 7/1/06 284
200 Sunrise City Utility Systems Revenue
Bond, Series 1996 A (AMBAC Insured),
0.00%, 10/1/01 179
1,000 Tampa Bay Water Utilities System Revenue
Bond, Series 1998 A (FGIC Insured),
5.125%, 10/1/16 1,027
750 Tampa City Sports Authority Revenue
Bond, Stadium Project (MBIA Insured),
6.00%, 1/1/06 847
----------
Total Municipal Investments
(cost $24,846) 25,709
----------
NUMBER
OF SHARES
(000S)
- ---------
SHORT-TERM INVESTMENT - 1.7%
451 Federated Tax Free Trust Money
Market Fund #15
(cost $451) 451
----------
Total Investments - 98.2%
(cost $25,297) 26,160
Other Assets less Liabilities - 1.8% 494
----------
NET ASSETS - 100.0% $ 26,654
==========
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
FIXED INCOME FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
ASSET BACKED SECURITIES - 19.9%
$5,000 Banc One Credit Card Master Trust,
7.80%, 12/15/00 $ 5,012
5,815 California Infrastructure PG&E-1,
Series 1997-1, Class A5,
6.25%, 6/25/04 6,060
869 Chevy Chase Auto Receivables Trust,
Series 1997-2, Class A,
6.35%, 1/15/04 877
2,372 Contimortgage Net Interest Margin Notes,
Series 1998-A, Class A,
7.92%, 3/16/28<F2> 2,362
854 Delta Funding Mortgage Corp., I.O.,
Series 1991-1, Class A-4,
3.24%, 3/15/06<F2> 4
145 DLJ Mortgage Acceptance Corp.,
7.25%, 5/25/24 153
4,325 First Union-Lehman Brothers-Bank of
America, Series 1998-C2, Class A2,
6.56%, 11/18/08 4,500
3,352 IMC Excess Cashflow Securities Trust,
Series 1997-A, Class A,
7.41%, 11/26/28<F2> 3,283
4,840 Mortgage Capital Funding, Inc.,
Series 1998-MC1, Class A2,
6.66%, 1/18/08 5,123
756 Olympic Automobile Receivables,
7.875%, 7/15/01 763
1,738 PNC Mortgage Securities Corp.,
8.09%, 4/28/27<F2> 1,798
2,203 Residential Asset Securitization Trust,
Series 1997-A8 C, Class A3,
7.00%, 10/25/27 2,220
1,029 The Money Store Trust,
Series 1997-1, 7.36%, 5/16/01<F2> 1,039
3,785 TMS Auto Grantor Trust,
Series 1997-3, Class A2,
6.12%, 12/20/03 3,813
Western Financial Grantor Trust
250 Series 1994-4, Class A-1, 7.10%, 1/1/00 251
1,414 Series 1995-4, Class A-1, 6.20%, 2/1/02 1,424
8,000 WFO Financial Owner Trust,
Series 1998-B, Class A3,
5.95%, 7/20/01 8,080
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
Total Asset Backed Securities
(cost $46,202) $ 46,762
----------
CORPORATE/GOVERNMENT BONDS
AND NOTES - 31.1%
BROKERAGE SERVICES - 2.1%
Lehman Brothers Holdings MTN
$2,650 7.375%, 5/15/00 2,669
1,350 6.90%, 1/29/01 1,351
1,000 6.625%, 12/27/02 996
----------
5,016
----------
FINANCIAL SERVICES - 10.1%
6,450 Asian Development Bank,
6.375%, 10/1/28 7,346
7,750 CIT Group, Inc.,
5.85%, 5/26/00 7,857
7,500 Ford Motor Credit Co.,
6.00%, 1/14/03 7,724
765 Lumberman's Mutual Casualty Co.,
8.45%, 12/1/97 929
----------
23,856
----------
FOREIGN GOVERNMENT BOND - 1.8%
3,675 Quebec, Province of Canada,
7.22%, 7/22/36 4,258
----------
INDUSTRIAL INSTRUMENTS - 6.9%
1,473 Coca-Cola Enterprise,
7.00%, 10/1/26 1,613
3,900 Grand Metropolitan Investment Corp.,
7.45%, 4/15/35 4,558
4,540 Penney (J.C.) & Co., Inc.,
6.90%, 8/15/26 4,798
5,000 WMX Technologies, Inc.,
7.10%, 8/1/26 5,370
----------
16,339
----------
INSURANCE SERVICES - 6.1%
2,900 Anthem Insurance, Inc.,
9.00%, 4/1/27<F2> 3,383
3,910 Lumberman's Mutual Casualty Co.,
9.15%, 7/1/26<F2> 4,700
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
FIXED INCOME FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
INSURANCE SERVICES - 6.1% (CONT'D.)
$5,550 Prudential Insurance,
8.30%, 7/1/25<F2> $ 6,394
----------
14,477
----------
PETROLEUM PRODUCTS - 1.3%
3,450 Petrozuata Finance, Inc.,
8.22%, 4/1/17<F2> 3,105
----------
PRINTING AND PUBLISHING - 0.1%
19 Berkshire Hathaway, Inc.,
9.75%, 1/15/18 20
----------
TRANSPORTATION - 2.7%
5,950 Burlington Northern Santa Fe Corp.,
6.53%, 7/15/37 6,243
----------
Total Corporate/Government Bonds
and Notes
(cost $70,002) 73,314
----------
U.S. GOVERNMENT AGENCIES - 5.4%
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.8%
FHLMC - 0.6%
212 Series 1248, Class B,
7.00%, 3/15/22 220
440 Series 1591, Class FH,
7.00%, 9/15/22 448
810 Series 1591, Class SH,
5.03%, 9/15/22 792
----------
1,460
----------
FNMA REMIC TRUSTS - 0.2%
14,878 Series 1997-20, I.O.,
5.64%, 3/25/27 392
----------
MORTGAGE BACKED SECURITIES - 4.6%
1 FHLMC, 6.50%, 6/1/04 1
1 GNMA, 11.50%, 3/15/99 1
10,691 GNMA, 6.50%, 7/15/28 10,928
----------
10,930
----------
Total U.S. Government Agencies
(cost $12,998) 12,782
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 35.5%
U.S. TREASURY BONDS
$ 825 6.625%, 7/31/01 $ 873
36,370 7.50%, 2/15/05 42,542
10,000 6.625%, 5/15/17 11,520
18,215 7.125%, 2/15/23 22,993
5,000 6.125%, 11/15/27 5,764
----------
Total U.S. Government Obligations
(cost $78,293) 83,692
----------
FLOATING RATE BANK NOTES - 4.3%
6,200 Lloyds Bank PLC, 6.19%, 12/15/98 5,318
5,900 National Westminster Bank,
5.81%, 11/28/98 4,801
----------
Total Floating Rate Bank Notes
(cost $10,488) 10,119
----------
SHORT-TERM INVESTMENT - 0.1%
283 Berliner Handels und Frankfurter,
5.938%, 10/1/98
(cost $283) 283
----------
Total Investments - 96.3%
(cost $218,266) 226,952
Other Assets less Liabilities - 3.7% 8,662
----------
NET ASSETS - 100.0% $ 235,614
==========
<F2> These private placement securities may require registration under the
Securities Act of 1933 or an exemption therefrom in order to effect sale in
the ordinary course of business. At September 30, 1998, the value of these
securities amounted to approximately $26,068,000 or 11.1% of net assets.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 99.7%
ARIZONA - 4.3%
$ 320 Cochise County School District No. 68,
Sierra Vista G.O. Bond (FGIC Insured),
9.00%, 7/1/03 $ 391
1,500 Maricopa County Industrial Development
Authority Hospital Facilities Improvement
Bond, Mayo Clinic Hospital,
5.25%, 11/15/37 1,531
3,000 Maricopa County School District No. 41,
Gilbert G.O. Bond, 6.25%, 7/1/15 3,313
1,260 Maricopa County School District No. 69,
Paradise Valley G.O. Bond, Series 1991 B,
8.50%, 7/1/06 1,629
1,500 Maricopa County Unified School District
No. 11, Peoria Project 1991 G.O. Bond,
5.50%, 7/1/10 1,607
----------
8,471
----------
CALIFORNIA - 10.2%
4,315 California State Health Facilities Financing
Authority Revenue Bond, 5.125%, 7/1/18 4,316
California State Public Works Board Lease
Revenue Bond,
1,150 Series 1991 A - Calpatria,
6.10%, 9/1/02 1,249
4,000 Series 1993 E - Madera,
5.50%, 6/1/15 4,406
3,500 California Statewide Communities
Development Authority Revenue Refunding
Bond, Series A-2, Irvine Apartment
Communities, 4.90%, 5/15/25 3,589
90 Fresno City Sewer System Revenue Bond,
Series 1993 A-1 (AMBAC Insured),
4.75%, 9/1/21 91
2,760 Los Angeles City Convention and Exhibition
Center Authority COP,
Prerefunded, 9.00%, 12/1/05 3,670
1,000 Los Angeles County Metropolitan
Transportation Authority Sales TRB,
Series B (AMBAC Insured),
4.75%, 7/1/18 1,001
1,500 Los Angeles County Public Works
Financing Authority Regional Park and
Space Revenue Bond, 4.50%, 10/1/05 1,571
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 10.2% (CONT'D.)
$ 230 Walnut Valley Unified School District
G.O. Bond, Series 1991 A (MBIA Insured),
Escrowed to Maturity, 6.00%, 8/1/13 $ 268
----------
20,161
----------
COLORADO - 1.9%
3,500 Denver City and County G.O. Refunding
Bond, Series A, 5.25%, 8/1/06 3,799
----------
CONNECTICUT - 0.3%
460 Connecticut State Transportation
Infrastructure Special TRB, Series 1990 A,
7.125%, 6/1/10 578
----------
FLORIDA - 7.2%
3,670 Broward County G.O. Bond,
10.00%, 7/1/14 5,702
480 Florida State Board of Education Capital
Outlay G.O. Bond, Series 1985,
9.125%, 6/1/14 701
1,500 Florida State Board of Education Capital
Outlay School Improvement Bond,
Series A, 5.50%, 1/1/05 1,633
2,500 Florida State Division of Bond Financing
Department General Recreational Facilities
Improvement Department of Environmental
Protection Revenue Bond, PRSV 2000,
Series A (AMBAC Insured), 5.75%, 7/1/08 2,822
1,000 Florida State Division of Bond Financing
Department General Recreational Facilities
Improvement Department of Environmental
Protection Revenue Bond PRSV 2000,
Series A (MBIA Insured), 6.00%, 7/1/05 1,125
1,750 Orlando City Utilities Commission
Water and Electric Revenue Refunding
Bond, Series 1989 D, 6.75%, 10/1/17 2,177
----------
14,160
----------
GEORGIA - 2.7%
1,500 Fulton County Water and Sewer Revenue
Bond (FGIC Insured), 4.75%, 1/1/28 1,465
2,300 Georgia State Municipal Electric
Authority Power Revenue Bond,
Series 1992 B (FGIC Insured),
6.375%, 1/1/16 2,770
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
GEORGIA - 2.7% (CONT'D.)
$1,120 Gwinnett County School District
G.O. Bond, Series 1993, 4.00%, 2/1/12 $ 1,060
----------
5,295
----------
ILLINOIS - 11.0%
Chicago City G.O. Bond, Series 1993 B
(AMBAC Insured)
1,835 5.125%, 1/1/15 1,934
4,610 5.125%, 1/1/22 4,818
1,480 Chicago City Water Revenue Refunding
Bond, Series 1993 (FGIC Insured),
4.125%, 11/1/13 1,417
5,000 Chicago Midway Airport Revenue
Refunding Bond, Series A (AMT)
(MBIA Insured), 5.125%, 1/1/35 4,987
3,000 Chicago Midway Airport Revenue
Refunding Bond, Series A (MBIA Insured),
5.50%, 1/1/29 3,175
Chicago O'Hare Airport Revenue
Bond FRN, American Airlines
(Royal Bank of Canada LOC)
800 Series 1983 C, 4.20%, 10/1/98 800
1,100 Series 1983 D, 4.20%, 10/1/98 1,100
Illinois State Development Financing
Authority Economic Development Revenue
Bond, Latin School of Chicago Project,
350 5.60%, 8/1/18 358
730 5.65%, 8/1/28 747
1,000 Illinois State Development Financing
Authority PCR Refunding Bond
(MBIA Insured), 5.40%, 3/1/28 1,022
1,250 Illinois State Educational Facilities
Authority Revenue Bonds, Series B,
University of Chicago, 4.40%, 7/1/25 1,268
----------
21,626
----------
INDIANA - 5.7%
970 Hamilton County Public Building
Corporation First Mortgage Bond,
7.25%, 8/1/13 1,238
420 Indiana State Municipal Power
Agency Revenue Bond, Series 1993 B
(MBIA Insured), 6.00%, 1/1/12 486
1,290 Indiana State Office Building Capital
Complex Revenue Bond, Series 1990 B
(MBIA Insured), 7.40%, 7/1/15 1,703
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
INDIANA - 5.7% (CONT'D.)
$3,305 Indiana State Transportation Authority
Airport Finance Lease Revenue Bond,
Series 1995 A, 5.50%, 11/1/12 $ 3,496
Indianapolis City Gas Revenue
Bond, Series 1986 B (FGIC Insured),
400 5.00%, 6/1/06 427
910 4.00%, 6/1/08 904
970 3.50%, 6/1/18 820
2,000 Marion County Convention and
Recreational Facility Authority Excise TRB,
Series A (AMBAC Insured), 7.00%, 6/1/21 2,183
----------
11,257
----------
KANSAS - 1.9%
Burlington City Environmental
Improvement Revenue Refunding Bond,
Kansas City Power & Light Co. Project,
2,000 Series D, 4.35%, Mandatory Put, 9/1/01 2,019
1,650 Series C, 4.50%, Mandatory Put, 9/1/03 1,668
----------
3,687
----------
MASSACHUSETTS - 1.6%
3,000 Massachusetts Grant Anticipation Notes
Series A, 5.50%, 6/15/14 3,234
MICHIGAN - 1.7%
1,250 Michigan State Hospital Finance
Authority Revenue Bond, Series A,
Oakwood, 5.00%, 8/15/31 1,234
2,000 University of Michigan Hospital Revenue
Refunding Bond, Series A-1,
5.25%, 12/1/09 2,154
----------
3,388
----------
MINNESOTA - 1.0%
2,000 Northern Municipal Power Agency
Minnesota Electric Systems Revenue
Refunding Bond, Series B
(AMBAC Insured), 4.75%, 1/1/20 1,971
----------
MISSISSIPPI - 0.6%
1,000 Mississippi State G.O. Refunding Bond,
Series B 5.90%, 11/15/08 1,150
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MISSOURI - 3.0%
$5,000 Missouri State Health and Educational
Facilities Revenue Bonds, BJC Health
Systems, 5.00%, 5/15/38 $ 4,890
1,000 University of Missouri Health Facilities
Revenue Bond, Series A, University of
Missouri Health Systems (AMBAC Insured),
5.125%, 11/1/28 1,008
----------
5,898
----------
MONTANA - 0.1%
190 University of Montana Higher Education
Revenue Bond, Series A (MBIA Insured),
4.50%, 11/15/15 186
----------
NEBRASKA - 2.2%
4,000 Nebraska State Public Power District
Revenue Bond, Series A (MBIA Insured),
5.25%, 1/1/06 4,309
----------
NEVADA - 2.6%
1,000 Carson City School District G.O.
Refunding Bond, Series 1993
(AMBAC Insured), 4.50%, 4/1/11 1,001
1,150 Clark County Sanitation District
G.O. Bond, Series A (AMBAC Insured),
Prerefunded, 6.60%, 7/1/02 1,274
580 Nevada State G.O. Refunding
Bond, Project 20-23A, Escrowed to
Maturity (Colld. by U.S. Government
Securities), 7.20%, 7/1/06 611
2,000 Washoe County Airport Authority
Revenue Bond, Series A (MBIA Insured),
5.70%, 7/1/26 2,181
----------
5,067
----------
NEW JERSEY - 1.3%
New Jersey State Health Care Facilities
Finance Authority Revenue Refunding
Bond, Series A, Hackensack University
Medical Center, (MBIA Insured),
1,000 5.375%, 1/1/13 1,074
1,500 5.375%, 1/1/14 1,583
----------
2,657
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
NEW YORK - 17.7%
New York City G.O. Refunding Bond
$1,500 Series A, 5.00%, 8/1/05 $ 1,579
4,000 Series F, 5.00%, 9/15/06 4,265
1,000 Series D, 5.75%, 8/1/07 1,110
6,750 Series J, 5.00%, 8/1/23 6,702
5,000 New York City Municipal Water
Financing Authority Water and Sewer
System Refunding Revenue Bond,
Series A (MBIA Insured), 5.50%, 6/15/23 5,223
New York City Transitional Financing
Authority Future Tax Secured Revenue Bond,
1,500 Series B, 4.75%, 11/15/18 1,475
1,500 Series C, 4.75%, 5/2/23 1,468
1,500 Series B, 4.50%, 11/15/27 1,419
5,500 New York State Power Authority Revenue
Refunding Bond, 5.00%, 2/15/04 5,791
1,000 New York State Urban Development Corp.
Refunding Bond (Colld. by HUD 236),
5.50%, 7/1/16 1,048
3,000 New York State Urban Development Corp.
Revenue Bond Correctional Facilities
Service Contract, Series A, 5.00%, 1/1/28 2,959
1,750 Triborough Bridge and Tunnel Authority
Special Obligation Revenue Refunding
Bond (MBIA Insured), 5.125%, 1/1/16 1,819
----------
34,858
----------
NORTH CAROLINA - 4.5%
610 North Carolina State Eastern Municipal
Power Agency Revenue Refunding Bond,
Series 1991 A, Escrowed to Maturity,
6.50%, 1/1/18 749
3,850 North Carolina State Eastern Municipal
Power Agency Revenue Refunding Bond,
Series 1993B, 7.00%, 1/1/08 4,517
2,000 North Carolina State Medical Care
Community Hospital Revenue Bond,
First Health of the Carolinas,
4.75%,10/1/26 1,911
1,750 North Carolina State Medical Care
Community Hospital Revenue Bond,
Gaston Health Care, 5.00%, 2/15/29 1,713
----------
8,890
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
OHIO - 2.9%
$3,000 Cleveland City Waterworks Revenue
Refunding Improvement Bond,
Series I (FSA Insured), 5.25%, 1/1/13 $ 3,188
2,500 Scioto County Marine Terminal Revenue
Refunding Bond, Norfolk Southern Corp.
Project, 5.30%, 8/15/13 2,547
----------
5,735
----------
OKLAHOMA - 0.8%
1,380 McGee Creek Water Authority Revenue
Bond, Series 1992 (MBIA Insured),
6.00%, 1/1/13 1,599
----------
OREGON - 0.7%
1,000 Medford City Hospital Facilities Authority
Revenue Bonds, Series A, Asante Health
Systems, (MBIA Insured), 5.375%, 8/15/12 1,074
230 Oregon State G.O. Bond, Series 66,
10.50%, 6/1/02 283
----------
1,357
----------
PENNSYLVANIA - 2.7%
5,000 Pennsylvania State G.O. Bond, Series 1,
5.00%, 3/1/05 5,301
----------
SOUTH CAROLINA - 4.1%
5,000 Piedmont County Municipal Power Agency
Electric Revenue Bond, Series 1996 A,
6.55%, 1/1/16 5,009
3,000 South Carolina State Public Service
Authority Revenue Refunding Bond,
Series A (MBIA Insured), 5.00%, 1/1/19 3,036
----------
8,045
----------
TENNESSEE - 2.3%
1,000 Nashville and Davidson Counties
Metropolitan Government Revenue
Refunding Bond, Prerefunded,
6.15%, 5/15/02 1,099
1,500 Nashville and Davidson County Metropolitan
Government Revenue Refunding Bond,
Series A (FGIC Insured), 4.75%, 1/1/22 1,475
2,000 Tennessee State Energy Acquisition Corp.
Gas Revenue Bond, Series B (AMBAC Insured),
4.50%, 9/1/08 2,039
----------
4,613
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
TEXAS - 1.5%
$1,030 Colorado River Municipal Water District
Water Revenue Bonds,
Prerefunded, 9.50%, 1/1/01 $ 1,158
800 Harris County Health Facility
Development Corp. Revenue Refunding
FRN, Series 1994, Methodist Hospital,
4.20%, 10/1/98 800
1,030 Texas State Coastal Industrial Water
Authority Revenue Bond, Escrowed to
Maturity (Colld. by U.S. Government
Securities), 6.375%, 12/15/07 1,093
----------
3,051
----------
UTAH - 1.3%
2,500 Utah State Intermountain Power Agency
Power Supply Revenue Refunding Bond,
Series D, 5.00%, 7/1/21 2,473
----------
WASHINGTON - 0.8%
1,500 Washington State Public Power Supply
System Revenue Refunding Bond,
Series A, 5.125%, 7/1/18 1,503
----------
WISCONSIN - 1.1%
2,200 Menomonee Falls BAN, 4.10%, 12/1/99 2,204
----------
Total Municipal Investments
(cost $185,647) 196,523
----------
NUMBER
OF SHARES
(000S)
- ---------
SHORT-TERM INVESTMENTS - 3.4%
861 AIM Tax Free Cash Reserve Fund 861
5,901 Provident Municipal Fund 5,901
----------
Total Short-Term Investments
(cost $6,762) 6,762
----------
Total Investments - 103.1%
(cost $192,409) 203,285
Liabilities less Other Assets (3.1)% (6,161)
----------
NET ASSETS - 100.0% $ 197,124
==========
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA TAX-EXEMPT FUND
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
MUNICIPAL INVESTMENTS - 99.2%
CALIFORNIA - 95.9%
$ 450 Anaheim PFA Lease Revenue Bond,
Import Project, Series C (FSA Insured),
6.00%, 9/1/09 $ 517
250 Anaheim PFA Tax Allocation Revenue
Bond, Series A, Redevelopment Project
(MBIA Insured), 5.25%, 2/1/18 262
1,000 California State Department of
Transportation Refunding COP, Series A
(MBIA Insured), 5.25%, 3/1/16 1,059
750 California State Department of Water Bond,
Series O, 4.75%,12/1/16 757
150 California State G.O. Bond,
6.60%, 2/1/10 182
2,000 California State Health Facilities Financing
Authority Revenue Bond, Northern
California Presbyterian, 5.125%, 7/1/18 2,001
1,500 California State Health Facilities Financing
Authority Revenue Bond, Series A
(FSA Insured), UCSF-Stanford Health Care,
5.00%, 11/15/18 1,519
1,500 California State Health Facility Financing
Authority Revenue Bond, Series B (AMBAC
Insured), UCSF-Stanford Health Care,
5.00%, 11/15/10 1,595
1,000 California State Health Facility Financing
Authority Revenue Bond, Series A (MBIA
Insured), Catholic HealthCare West,
5.00%, 7/1/17 1,026
California State Health Facility Financing
Authority Revenue Bond, Sutter Health
(FSA Insured)
500 Series C, 5.00%, 8/15/17 508
1,000 Series A, 5.00%, 8/15/37 997
1,000 California State Public Works Board Lease
Revenue Refunding Bond, Series A,
California Community College,
5.25%, 12/1/16 1,055
3,545 California State Public Works Board Lease
Revenue Bond, Series A, Trustee of
California State University, 5.25%, 10/1/14 3,673
1,000 California State Public Works Board Lease
Revenue Refunding Bond, Series B,
California Community College (AMBAC
Insured), 5.625%, 3/1/16 1,064
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 95.9% (CONT'D.)
$1,000 California Statewide Communities
Development Authority Revenue
Refunding Bond, Series A-2,
Irvine Apartment Communities,
4.90%, Mandatory Put, 5/15/08 $ 1,025
1,500 Contra Costa Transportation Authority
Sales TRB, Series A (FGIC Insured),
5.50%, 3/1/02 1,594
400 Dry Creek Joint Elementary School District
G.O. Bond, Series A (FSA Insured),
0.00%, 8/1/09 252
2,000 East Bay Municipal Utility District Water
System Revenue Bond,
5.25%, 6/1/16 2,128
150 Escondido Unified High School District
G.O. Bond (MBIA Insured),
5.60%, 11/1/09 169
515 Fillmore Unified School District
G.O. Bond, Series A (FGIC Insured),
0.00%, 7/1/10 307
200 Folsom School Facilities Projects
G.O. Bond, Series D (FGIC Insured),
5.70%, 8/1/13 225
295 Fontana Unified School District
G.O. Bond, Series D (FGIC Insured),
0.00%, 5/1/02 282
375 Foothill/Eastern Transportation Corridor
Agency Toll Road Senior Lien Revenue
Bond, Series A, 0.00%, 1/1/05 284
1,160 Fremont Unified School District Refunding
G.O. Bond, Series A, Alameda County,
0.00%, 8/1/13 581
1,000 Galt Schools Joint Powers Authority
Revenue Refunding Bond, Series A,
High School and Elementary School
Projects (MBIA Insured), 5.75%, 11/1/16 1,118
200 Imperial Irrigation District Refunding COP,
Electricity System Project (MBIA Insured),
5.20%, 11/1/09 220
200 Lemoore Unified High School District G.O.
Bond (AMBAC Insured), 6.00%, 1/1/12 234
550 Los Angeles Convention and Exhibition
Center Authority Lease Revenue Refunding
Bond, Series A, 6.125%, 8/15/11 650
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 95.9% (CONT'D.)
$ 500 Los Angeles County COP, Correctional
Facility Project, Prerefunded,
6.50%, 9/1/00 $ 538
300 Los Angeles County Metropolitan
Transportation Authority Sales TRB,
Series A (MBIA Insured), 5.125%, 7/1/10 324
1,000 Los Angeles County Metropolitan
Transportation Authority Sales TRB, Series B
(AMBAC Insured), 4.75%, 7/1/18 1,001
1,000 Los Angeles County Public Works Financing
Authority Revenue Bond, Series A, Regional
Park and Open Spaces District Project,
5.50%, 10/1/10 1,115
200 Los Angeles Department of Water and
Power Electricity Plant Revenue Refunding
Bond (FGIC Insured), 4.75%, 8/15/17 201
405 Los Angeles Department of Water and
Power Waterworks Revenue Refunding
Bond (FGIC Insured), 4.50%, 5/15/14 403
40 Los Angeles Harbor Department Revenue
Bond, 7.60%, 10/1/18 53
450 Los Angeles Unified School District G.O.
Bond, Series A (FGIC Insured), 6.00%, 7/1/15 524
2,000 Metropolitan Water District Southern
California G.O. Refunding Bond, Series A,
5.25%, 3/1/13 2,156
Metropolitan Water District Southern
California Waterworks Revenue Bond
1,000 Series A, 5.00%, 7/1/15 1,041
1,000 Series A, 5.00%, 7/1/26 1,007
300 Series C, 5.125%, 7/1/12 320
200 Metropolitan Water District Southern
California Waterworks Revenue Refunding
Bond, Series B (MBIA Insured),
5.00%, 7/1/14 208
1,500 Modesto Revenue COP, Water System
Improvement Project (AMBAC Insured),
Prerefunded, 6.25%, 10/1/01 1,647
1,420 Modesto Revenue Refunding COP, Water
Utility System Refining Project (FGIC
Insured), 5.125%, 10/1/17 1,475
720 Monrovia Unified School District G.O.
Bond, Series A (MBIA Insured),
0.00%, 8/1/10 428
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 95.9% (CONT'D.)
$ 250 M-S-R Public Power Agency Revenue
Refunding Bond, Series G, San Juan Project
(MBIA Insured), 5.25%, 7/1/11 $ 271
200 Oakland G.O. Bond, Measure I
(FGIC Insured), 5.60%, 12/15/14 221
2,000 Oakland City Building Authority Lease
Revenue Bond, Series A (AMBAC Insured),
Elihu M. Harris Office Building,
5.00%, 4/1/15 2,076
1,750 Paramount Unified School District G.O.
Bond, Series A (FSA Insured),
5.125%, 9/1/19 1,806
195 Pomona Unified School District Refunding
G.O. Bond, Series A (MBIA Insured),
5.45%, 2/1/06 216
1,500 Poway Unified School District Special Tax
Community Facilities District No. 1 Bond
(MBIA Insured), 4.875%, 10/1/17 1,519
500 Redding Joint Powers Financing Authority
Electrical Systems Revenue Bond, Series A
(MBIA Insured), 5.25%, 6/1/15 532
500 Riverside County Transportation
Community Sales TRB, Series A
(FGIC Insured), 6.00%, 6/1/05 567
250 Riverside Sewer Revenue Refunding Bond
(FGIC Insured), 5.00%, 8/1/11 269
1,000 Sacramento County Generation Authority
Project Revenue Refunding Bond (MBIA
Insured), 5.25%, 7/1/12 1,076
1,000 Sacramento County Airport System Revenue
Refunding Bond, Series A (FGIC Insured),
5.00%, 7/1/18 1,020
1,000 Sacramento Municipal Utility District
Electric Revenue Bond, Series L (AMBAC
Insured), 5.20%, 7/1/16 1,057
1,530 Salinas Sanitary Sewer Systems Revenue
Bond (FGIC Insured), 5.00%, 8/1/20 1,539
1,000 San Diego County Regional Transportation
Sales TRB, Series A (AMBAC Insured),
6.00%, 4/1/06 1,145
1,000 San Diego County Water Authority
Revenue Refunding COP, Series A,
4.75%, 5/1/14 1,015
1,000 San Diego CTFS Water Utility Fund -
Net System Revenue Bond (FGIC Insured),
5.375%, 8/1/10 1,100
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
CALIFORNIA TAX-EXEMPT FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
CALIFORNIA - 95.9% (CONT'D.)
San Diego Public Facilities Financing
Authority Sewer Revenue Bond
(FGIC Insured)
$ 250 Series A, 5.20%, 5/15/11 $ 270
450 Series B, 5.375%, 5/15/17 481
200 San Diego Unified School District COP,
Series A, Capital Projects, 5.00%, 7/1/00 205
1,000 San Francisco Bay Area Rapid Transit
District Sales Refunding TRB,
5.25%, 7/1/17 1,061
700 Santa Clara County Financing Authority
Lease Revenue Multiple Facilities Project
Bond, Series A (AMBAC Insured),
4.40%, 5/15/10 716
Santa Rosa Wastewater Revenue Refunding
Bond (FGIC Insured)
200 4.75%, 9/1/16 202
35 Series A, 5.25%, 9/1/16 37
1,000 University of California Revenue Refunding
Bond, Series E (MBIA Insured), Multiple
Purpose Project, 5.125%, 9/1/17 1,039
230 West Basin Municipal Water District
Revenue Refunding COP, Series 1992A
(AMBAC Insured), 5.25%, 8/1/11 248
1,000 West & Central Basin Financing Authority
Revenue Bond (AMBAC Insured),
Prerefunded, 6.125%, 8/1/02 1,111
----------
58,524
----------
PUERTO RICO - 3.3%
1,000 Puerto Rico Commonwealth Highway and
Transportation Authority Revenue Bond,
Series A (AMBAC Insured),
5.00%, 7/1/28 1,007
1,000 Puerto Rico Commonwealth Infrastructure
Financing Authority Special TRB, Series A
(AMBAC Insured), 5.00%, 7/1/21 1,007
----------
2,014
----------
Total Municipal Investments
(cost $57,905) 60,538
----------
NUMBER
OF SHARES VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.2%
100 Federated California Municipal Cash
Trust Money Market Fund $ 100
7 Smith Barney Municipal Bond Fund
California Portfolio 7
----------
Total Short-Term Investments
(cost $107) 107
----------
Total Investments - 99.4%
(cost $58,012) 60,645
Other Assets less Liabilities - 0.6% 357
----------
NET ASSETS - 100.0% $ 61,002
==========
See Notes to the Financial Statements.
<PAGE>
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERNATIONAL FIXED INCOME FUND
PRINCIPAL AMOUNT/
LOCAL CURRENCY VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
DEBT OBLIGATIONS - 88.4%
AUSTRALIAN DOLLAR - 2.2%
490 Commonwealth of Australia,
10.00%, 10/15/02 $ 346
BELGIAN FRANC - 1.9%
8,175 Kingdom of Belgium,
7.50%, 7/29/08 299
BRITISH POUND STERLING - 18.6%
125 Abbey National PLC,
6.00%, 8/10/99 210
350 BAA PLC,
7.875%, 2/10/07 649
375 Lloyds Bank PLC,
7.375%, 3/11/04 662
Treasury of Great Britain
325 7.50%, 12/7/06 644
300 8.00%, 6/7/21 737
----------
2,902
----------
CANADIAN DOLLAR - 4.1%
500 Government of Canada,
7.50%, 12/1/03 367
375 Province of Ontario,
7.25%, 9/27/05 272
----------
639
----------
DANISH KRONE - 4.7%
3,850 Kingdom of Denmark,
8.00%, 3/15/06 735
----------
FRENCH FRANC - 6.1%
2,300 Electric de France,
8.60%, 4/9/04 501
2,250 Government of France,
5.50%, 4/25/07 446
----------
947
----------
GERMAN MARK - 15.4%
Federal Republic of Germany
1,100 7.50%, 11/11/04 788
1,175 6.25%, 1/4/24 847
500 LKB Global Bond,
6.00%, 5/10/99 303
PRINCIPAL AMOUNT/
LOCAL CURRENCY VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
GERMAN MARK - 15.4% (CONT'D.)
330 Republic of Austria,
8.00%, 1/30/02 $ 224
380 Republic of Finland,
5.50%, 2/9/01 237
----------
2,399
----------
ITALIAN LIRA - 11.8%
2,500,000 Republic of Italy,
8.50%, 4/1/04 1,839
----------
JAPANESE YEN - 8.8%
55,000 Asian Development Bank,
5.00%, 2/5/03 478
15,000 European Investment Bank,
5.875%, 11/26/99 118
80,000 International Bank for
Reconstruction and Development,
4.50%, 3/20/03 687
10,000 Japanese Development Bank,
6.50%, 9/20/01 86
----------
1,369
----------
NETHERLANDS GUILDER - 5.7%
Treasury of the Netherlands
500 8.50%, 3/15/01 295
1,000 5.75%, 2/15/07 595
----------
890
----------
SPANISH PESETA - 6.8%
Government of Spain
51,000 11.30%, 1/15/02 442
65,000 10.00%, 2/28/05 610
----------
1,052
----------
SWEDISH KRONA - 1.5%
1,500 Kingdom of Sweden,
10.25%, 5/5/03 237
----------
UNITED STATES DOLLAR - 0.8%
100 U.S. Treasury Bond,
7.125%, 2/15/23 126
----------
Total Debt Obligations
(cost $12,931) 13,780
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERNATIONAL FIXED INCOME FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 8.5%
UNITED STATES DOLLAR
$623 Berlinger Handels und Frankfurter,
5.938%, 10/1/98 $ 623
698 FHLB Discount Note,
5.40%, 10/1/98 698
----------
Total Short-Term Investments
(cost $1,321) 1,321
----------
Total Investments - 96.9%
(cost $14,252) 15,101
Other Assets less Liabilities - 3.1% 481
----------
NET ASSETS - 100.0% $ 15,582
==========
See Notes to the Financial Statements.
<PAGE>
- --------------------
STATEMENTS OF ASSETS AND LIABILITIES SEPTEMBER 30, 1998 (UNAUDITED)
EQUITY FUNDS
<TABLE>
<CAPTION>
INT'L. INT'L.
INCOME STOCK GROWTH SELECT MID CAP SMALL GROWTH SELECT TECH-
AMOUNTS IN THOUSANDS, EQUITY INDEX EQUITY EQUITY GROWTH CAP EQUITY EQUITY NOLOGY
EXCEPT PER SHARE DATA FUND FUND FUND FUND FUND FUND FUND FUND FUND
- -------------------------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
ASSETS: <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at value (cost $104,249,
$99,423, $384,385, $113,738, $25,105,
$276,181, $168,069, $102,558
and $121,345, respectively) $106,267 $107,558 $472,646 $129,207 $23,693 $278,738 $169,210 $108,455 $138,369
Cash and foreign currencies 2 1 1 - 1 1 - 1,292 1
Income receivable 481 131 373 92 3 171 276 100 20
Receivable for foreign tax withheld - - - - - - 461 125 -
Receivable for securities sold 141 - 1,683 - 777 366 6,453 3,362 -
Receivable for fund shares sold 64 829 221 168 - 395 560 75 192
Receivable from Adviser 3 3 6 3 6 6 3 3 -
Deferred organization costs, net of
accumulated amortization 4 - 6 3 - 5 5 5 -
Prepaid and other assets 12 13 22 13 30 18 15 9 16
- -----------------------------------------------------------------------------------------------------------------------------------
Total Assets 106,974 108,535 474,958 129,486 24,510 279,700 176,983 113,426 138,598
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES:
Due to Custodian - 132 28 3 - - 2,064 - -
Payable for securities purchased 461 345 402 264 1,347 135 1,681 5,905 2,581
Payable for fund shares redeemed 98 100 198 30 - 261 72 105 34
Accrued investment advisory fees 15 7 68 19 3 39 29 18 23
Accrued administration fees 9 4 33 8 1 29 13 8 13
Accrued custody and accounting fees - 6 - - 1 8 - 1 -
Accrued transfer agent fees 2 2 8 2 - 5 3 2 2
Accrued registration fees and other
liabilities 15 8 20 9 10 18 17 9 8
- -----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 600 604 757 335 1,362 495 3,879 6,048 2,661
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets $106,374 $107,931 $474,201 $129,151 $23,148 $279,205 $173,104 $107,378 $135,937
===================================================================================================================================
ANALYSIS OF NET ASSETS:
Capital stock $98,040 $98,755 $338,336 $104,932 $27,503 $260,379 $162,949 $95,962 $112,094
Accumulated undistributed
(distributions in excess of)
income (loss) 82 42 177 47 (40) 411 (939) (270) (556)
Accumulated undistributed net
realized gains (losses) on
investments, options, futures
and foreign currency transactions 6,234 1,053 47,674 8,703 (2,903) 15,957 9,889 5,790 7,375
Net unrealized appreciation
(depreciation) on investments,
options and futures contracts 2,018 8,081 88,014 15,469 (1,412) 2,458 1,141 5,897 17,024
Net unrealized gains (losses) on
translation of assets and
liabilities denominated in
foreign currencies - - - - - - 64 (1) -
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets $106,374 $107,931 $474,201 $129,151 $23,148 $279,205 $173,104 $107,378 $135,937
===================================================================================================================================
SHARES OUTSTANDING ($.0001 PAR VALUE,
UNLIMITED AUTHORIZATION) 8,749 7,785 26,889 7,174 2,773 21,775 16,203 9,369 7,772
NET ASSET VALUE, REDEMPTION AND
OFFERING PRICE PER SHARE $12.16 $13.86 $17.64 $18.00 $8.35 $12.82 $10.68 $11.46 $17.49
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- --------------------
STATEMENTS OF OPERATIONS SIX MONTHS ENDED SEPTEMBER 30, 1998 (UNAUDITED)
EQUITY FUNDS
<TABLE>
<CAPTION>
INT'L. INT'L.
INCOME STOCK GROWTH SELECT MID CAP SMALL GROWTH SELECT TECH-
EQUITY INDEX EQUITY EQUITY GROWTH CAP EQUITY EQUITY NOLOGY
AMOUNTS IN THOUSANDS FUND FUND FUND FUND FUND<F5> FUND FUND FUND FUND
- -------------------------------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income $ 1,104 $ 167 $ 405 $ 58 $ 41 $ 162 $ 340 $ 190 $ 139
Dividend income 1,462 771 2,336 570 14 1,701 1,560 1,133 81
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 2,566 938 2,741<F2> 628 55 1,863 1,900<F3> 1,323<F4> 220
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Investment advisory fees 576 321 2,502 809 95 2,036 1,143 723 744
Administration fees 86 80 375 101 14 255 143 90 93
Transfer agent fees 58 54 250 67 9 170 95 60 62
Custody and accounting fees 29 62 62 33 21 71 116 87 30
Professional fees 9 9 12 9 19 11 10 9 9
Registration fees 8 13 13 10 7 12 8 6 9
Amortization of organization costs 5 - 6 4 - 5 6 5 -
Trustees' fees and expenses 2 2 5 2 1 4 3 2 2
Other 3 3 13 4 5 11 7 4 5
Total Expenses 776 544 3,238 1,039 171 2,575 1,531 986 954
Less voluntary waivers of:
Investment advisory fees (86) (107) (375) (236) (14) (594) (191) (120) (124)
Administration fees (47) (50) (214) (59) (10) (132) (80) (50) (51)
Less reimbursement of expenses
by Adviser (67) (92) (147) (70) (52) (152) (69) (63) (3)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Expenses 576 295 2,502 674 95 1,697 1,191 753 776
- -----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 1,990 643 239 (46) (40) 166 709 570 (556)
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAINS (LOSSES):
Net realized gains (losses) on:
Investments 1,378 244 34,272 9 (2,903) 9,417 8,421 10,776 4,327
Futures contracts - (462) (1,280) - - (1,619) - - -
Foreign currency transactions - - - - - - (122) (86) -
Net change in unrealized appreciation
(depreciation) on investments,
options and futures contracts (15,657) (8,861) (60,604) (8,253) (1,412) (93,864) (24,975) (21,176) (2,300)
Net change in unrealized losses on
translation of assets and
liabilities denominated in foreign
currencies - - - - - - (529) (34) -
- -----------------------------------------------------------------------------------------------------------------------------------
Net Gains (Losses) on Investments (14,279) (9,079) (27,612) (8,244) (4,315) (86,066) (17,205) (10,520) 2,027
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(12,289) $(8,436) $(27,373) $(8,290) $(4,355) $(85,900) $(16,496) $(9,950) $1,471
===================================================================================================================================
</TABLE>
<F2> Net of $34 in non-reclaimable foreign withholding taxes.
<F3> Net of $117 in non-reclaimable foreign withholding taxes.
<F4> Net of $80 in non-reclaimable foreign withholding taxes.
<F5> Commenced investment operations after the close of business
on March 31, 1998.
See Notes to the Financial Statements.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
EQUITY FUNDS
<TABLE>
<CAPTION>
INCOME EQUITY STOCK INDEX GROWTH EQUITY SELECT EQUITY
FUND FUND FUND FUND
--------------------- --------------------- --------------------- ---------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, SEPT. 30, MAR. 31, SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1998 1998 1998 1998 1998 1998 1998 1998
AMOUNTS IN THOUSANDS (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
- ------------------------------------ --------------------- --------------------- --------------------- ---------------------
<C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 1,990 $ 3,397 $ 643 $ 707 $ 239 $ 718 $ (46) $ 142
Net realized gains (losses) on
investments, options, futures
contracts and foreign currency
transactions 1,378 9,548 (218) 2,831 32,992 47,640 9 18,422
Net change in unrealized appreciation
(depreciation) on investments,
options, futures contracts and
forward foreign currency contracts (15,657) 13,166 (8,861) 18,305 (60,604) 102,175 (8,253) 17,761
Net change in unrealized gains (losses)
on translation of assets and
liabilities denominated in
foreign currencies - - - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net
Assets Resulting from Operations (12,289) 26,111 (8,436) 21,843 (27,373) 150,533 (8,290) 36,325
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 13,192 30,293 49,455 71,265 52,804 85,630 26,762 48,932
Shares from reinvestment of dividends 281 7,604 271 2,579 30 35,735 - 9,808
Shares redeemed (10,312) (12,408) (26,643) (34,323) (30,888) (55,984) (15,857) (20,167)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net
Assets Resulting from Capital
Share Transactions 3,161 25,489 23,083 39,521 21,946 65,381 10,905 38,573
- -----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income (2,060) (3,307) (623) (697) (154) (670) - (123)
From net realized gains - (7,833) - (2,600) - (38,067) - (11,916)
In excess of net investment income - - - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (2,060) (11,140) (623) (3,297) (154) (38,737) - (12,039)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (11,188) 40,460 14,024 58,067 (5,581) 177,177 2,615 62,859
NET ASSETS:
Beginning of period 117,562 77,102 93,907 35,840 479,782 302,605 126,536 63,677
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $106,374 $117,562 $107,931 $93,907 $474,201 $479,782 $129,151 $126,536
===================================================================================================================================
ACCUMULATED UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT
INCOME (LOSS) $82 $152 $42 $22 $177 $92 $47 $93
===================================================================================================================================
</TABLE>
<PAGE>
NORTHERN FUNDS Semi-Annual Report
<TABLE>
<CAPTION>
MIDCAP INTERNATIONAL
GROWTH SMALL CAP GROWTH EQUITY
FUND FUND FUND
--------------- -------------------------- --------------------------
SIX MONTHS SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1998 1998 1998 1998 1998
AMOUNTS IN THOUSANDS (UNAUDITED)<F2> (UNAUDITED) (UNAUDITED)
- ----------------------------------- --------------- -------------------------- --------------------------
<C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (40) $ 166 $ 803 $ 709 $ 1,385
Net realized gains (losses) on
investments, options, futures
contracts and foreign currency
transactions (2,903) 7,798 16,242 8,299 7,991
Net change in unrealized appreciation
(depreciation) on investments,
options, futures contracts and
forward foreign currency contracts (1,412) (93,864) 77,478 (24,975) 22,932
Net change in unrealized gains (losses)
on translation of assets and
liabilities denominated in
foreign currencies - - - (529) 614
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net
Assets Resulting from Operations (4,355) (85,900) 94,523 (16,496) 32,922
- -----------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 28,065 39,136 130,734 34,538 24,509
Shares from reinvestment of dividends - - 13,475 - 4,704
Shares redeemed (562) (42,610) (52,037) (23,148) (42,631)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net
Assets Resulting from Capital
Share Transactions 27,503 (3,474) 92,172 11,390 (13,418)
- -----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income - - (825) - (956)
From net realized gains - - (14,404) - (4,582)
In excess of net investment income - - - - (1,648)
- -----------------------------------------------------------------------------------------------------------------
Total Distributions Paid - - (15,229) - (7,186)
- -----------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 23,148 (89,374) 171,466 (5,106) 12,318
NET ASSETS:
Beginning of period - 368,579 197,113 178,210 165,892
- -----------------------------------------------------------------------------------------------------------------
End of period $23,148 $279,205 $368,579 $173,104 $178,210
=================================================================================================================
ACCUMULATED UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT
INCOME (LOSS) $(40) $411 $245 $(939) $(1,648)
=================================================================================================================
</TABLE>
NORTHERN FUNDS Semi-Annual Report
<TABLE>
<CAPTION>
INTERNATIONAL
SELECT EQUITY TECHNOLOGY
FUND FUND
-------------------------- --------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, SEPT. 30, MAR. 31,
1998 1998 1998 1998
AMOUNTS IN THOUSANDS (UNAUDITED) (UNAUDITED)
- ----------------------------------- -------------------------- --------------------------
<C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ 570 $ 330 $ (556) $ (722)
Net realized gains (losses) on
investments, options, futures
contracts and foreign currency
transactions 10,690 4,387 4,327 7,339
Net change in unrealized appreciation
(depreciation) on investments,
options, futures contracts and
forward foreign currency contracts (21,176) 18,625 (2,300) 20,811
Net change in unrealized gains (losses)
on translation of assets and
liabilities denominated in
foreign currencies (34) 44 - -
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net
Assets Resulting from Operations (9,950) 23,386 1,471 27,428
- -----------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS:
Shares sold 13,609 16,418 44,332 48,180
Shares from reinvestment of dividends - 402 - 4,409
Shares redeemed (13,899) (29,037) (14,255) (14,589)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net
Assets Resulting from Capital
Share Transactions (290) (12,217) 30,077 38,000
- -----------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS PAID:
From net investment income - (1,655) - -
From net realized gains - - - (4,793)
In excess of net investment income - (840) - -
- -----------------------------------------------------------------------------------------------------------------
Total Distributions Paid - (2,495) - (4,793)
- -----------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (10,240) 8,674 31,548 60,635
NET ASSETS:
Beginning of period 117,618 108,944 104,389 43,754
- -----------------------------------------------------------------------------------------------------------------
End of period $107,378 $117,618 $135,937 $104,389
=================================================================================================================
ACCUMULATED UNDISTRIBUTED (DISTRIBUTIONS
IN EXCESS OF) NET INVESTMENT
INCOME (LOSS) $(270) $(840) $(556) $-
=================================================================================================================
</TABLE>
<F2> Commenced investment operations after the close of business
on March 31, 1998.
See Notes to the Financial Statements.
- ---------------------
FINANCIAL HIGHLIGHTS
EQUITY FUNDS
<TABLE>
<CAPTION>
INCOME EQUITY
FUND
-----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995
(UNAUDITED)
- ------------------------------------------- -----------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.81 $11.81 $11.59 $ 9.95 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.23 0.45 0.44 0.34 0.29
Net realized and unrealized gains (losses)
on investments, options, futures contracts
and foreign currency transactions (1.64) 3.02 1.19 1.66 (0.08)
- ------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations (1.41) 3.47 1.63 2.00 0.21
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.24) (0.44) (0.44) (0.36) (0.26)
From net realized gains - (1.03) (0.97) - -
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.24) (1.47) (1.41) (0.36) (0.26)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.16 $13.81 $11.81 $11.59 $9.95
==============================================================================================================================
TOTAL RETURN<F3> (10.32)% 31.00% 14.42% 20.41% 2.21%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $106,374 $117,562 $77,102 $55,919 $38,954
Ratio to average net assets of<F4>:
Expenses, after waivers and
reimbursements 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers and
reimbursements 1.35% 1.37% 1.42% 1.48% 1.55%
Net investment income, after
waivers and reimbursements 3.47% 3.53% 3.71% 3.17% 3.08%
Net investment income (loss), before
waivers and reimbursements 3.12% 3.16% 3.29% 2.69% 2.53%
Portfolio Turnover Rate 37.63% 81.24% 72.04% 67.32% 45.68%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
NORTHERN FUNDS Semi-Annual Report
<TABLE>
<CAPTION>
STOCK INDEX
FUND
------------------------------------------
SIX MONTHS YEAR YEAR
ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31,
1998 1998 1997<F1>
(UNAUDITED)
- ------------------------------------------- ------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $15.03 $10.74 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.09 0.15 0.08
Net realized and unrealized gains (losses)
on investments, options, futures contracts
and foreign currency transactions (1.18) 4.80 0.74
- -------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations (1.09) 4.95 0.82
- -------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.08) (0.15) (0.07)
From net realized gains - (0.51) (0.01)
- ------------------------------------------------------------------------------------------------
Total Distributions Paid (0.08) (0.66) (0.08)
- ------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.86 $15.03 $10.74
================================================================================================
TOTAL RETURN<F3> (7.23)% 47.11% 8.21%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $107,931 $93,907 $35,840
Ratio to average net assets of<F4>:
Expenses, after waivers and
reimbursements 0.55% 0.55% 0.55%
Expenses, before waivers and
reimbursements 1.02% 1.18% 2.23%
Net investment income, after
waivers and reimbursements 1.20% 1.23% 1.92%
Net investment income (loss), before
waivers and reimbursements 0.73% 0.60% 0.24%
Portfolio Turnover Rate 1.05% 32.06% 64.94%
- ------------------------------------------------------------------------------------------------
</TABLE>
NORTHERN FUNDS Semi-Annual Report
<TABLE>
<CAPTION>
GROWTH EQUITY
FUND
-----------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995
(UNAUDITED)
- ------------------------------------------- -----------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $18.62 $13.93 $13.15 $10.61 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.01 0.03 0.08 0.08 0.08
Net realized and unrealized gains (losses)
on investments, options, futures contracts
and foreign currency transactions (0.98) 6.36 1.49 2.59 0.60
- ------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations (0.97) 6.39 1.57 2.67 0.68
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income (0.01) (0.03) (0.08) (0.08) (0.07)
From net realized gains - (1.67) (0.71) (0.05) -
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid (0.01) (1.70) (0.79) (0.13) (0.07)
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $17.64 $18.62 $13.93 $13.15 $10.61
==============================================================================================================================
TOTAL RETURN<F3> (5.26)% 48.06% 11.72% 25.13% 6.90%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $474,201 $479,782 $302,605 $224,571 $113,185
Ratio to average net assets of<F4>:
Expenses, after waivers and
reimbursements 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers and
reimbursements 1.29% 1.30% 1.33% 1.36% 1.40%%
Net investment income, after
waivers and reimbursements 0.10% 0.18% 0.56% 0.70% 0.86%
Net investment income (loss), before
waivers and reimbursements (0.19)% (0.12)% 0.23% 0.34% 0.46%
Portfolio Turnover Rate 24.00% 73.85% 67.34% 73.20% 82.90%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<F2> For the period October 7, 1996 (commencement of operations) through March
31, 1997.
<F3> Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions and a complete redemption
of the
investment at net asset value at the end of the period. Total return is not
annualized for periods less than one year.
<F4> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
- ---------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
EQUITY FUNDS
<TABLE>
<CAPTION>
MID CAP
SELECT EQUITY GROWTH
FUND FUND
-------------------------------------------------------------------- ------------
SIX MONTHS YEAR YEAR YEAR YEAR SIX MONTHS
ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31, SEPT. 30,
1998 1998 1997 1996 1995<F2> 1998
(UNAUDITED) (UNAUDITED)<F3>
- ------------------------------------ -------------------------------------------------------------------- ------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $19.16 $14.55 $13.12 $10.77 $10.00 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.01) 0.02 0.02 0.02 0.06 (0.01)
Net realized and unrealized gains (losses)
on investments, futures contracts
and foreign currency transactions (1.15) 6.81 2.05 2.73 0.75 (1.64)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations (1.16) 6.83 2.07 2.75 0.81 (1.65)
- ----------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - (0.02) (0.02) (0.03) (0.04) -
From net realized gains - (2.20) (0.62) (0.37) - -
In excess of net investment income - - - - - -
In excess of net realized gains - - - - - -
- ----------------------------------------------------------------------------------------------------------------------------------
Total Distributions Paid - (2.22) (0.64) (0.40) (0.04) -
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $18.00 $19.16 $14.55 $13.12 $10.77 $ 8.35
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN<F4> (6.03)% 49.71% 15.64% 25.70% 8.18% (16.53)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $129,151 $126,536 $63,677 $33,842 $15,123 $23,148
Ratio to average net assets of<F5>:
Expenses, after waivers and
reimbursements 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers and
reimbursements 1.54% 1.58% 1.67% 1.91% 2.61% 1.81%
Net investment income (loss), after
waivers and reimbursements (0.07)% 0.15% 0.21% 0.22% 0.82% (0.42)%
Net investment income (loss), before
waivers and reimbursements (0.61)% (0.43)% (0.46)% (0.69)% (0.79)% (1.23)%
Portfolio Turnover Rate 48.23% 148.55% 72.68% 137.99% 48.88% 95.27%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
NORTHERN FUNDS Semi-Annual Report
<TABLE>
<CAPTION>
SMALL CAP
FUND
--------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995
(UNAUDITED)
- ------------------------------------ --------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $16.76 $12.31 $11.58 $ 9.98 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.01 0.03 0.07 0.05 0.11
Net realized and unrealized gains (losses)
on investments, futures contracts
and foreign currency transactions (3.95) 5.14 1.37 2.29 (0.05)
- -------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations (3.94) 5.17 1.44 2.34 0.06
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - (0.04) (0.06) (0.07) (0.08)
From net realized gains - (0.68) (0.65) (0.67) -
In excess of net investment income - - - - -
In excess of net realized gains - - - - -
- -------------------------------------------------------------------------------------------------------------------
Total Distributions Paid - (0.72) (0.71) (0.74) (0.08)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.82 $16.76 $12.31 $11.58 $ 9.98
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN<F4> (23.48)% 42.71% 12.48% 24.09% 0.57%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $279,205 $368,579 $197,113 $155,238 $76,627
Ratio to average net assets of<F5>:
Expenses, after waivers and
reimbursements 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers and
reimbursements 1.52% 1.53% 1.54% 1.61% 1.76%
Net investment income (loss), after
waivers and reimbursements 0.10% 0.28% 0.54% 0.65% 1.36%
Net investment income (loss), before
waivers and reimbursements (0.42)% (0.25)% 0.00% 0.04% 0.60%
Portfolio Turnover Rate 4.52% 18.59% 18.92% 46.59% 82.46%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
NORTHERN FUNDS Semi-Annual Report
<TABLE>
<CAPTION>
INTERNATIONAL
GROWTH EQUITY
FUND
--------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995
(UNAUDITED)
- ------------------------------------ --------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.66 $10.05 $10.23 $ 9.61 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) 0.05 0.09 0.09 0.17 0.04
Net realized and unrealized gains (losses)
on investments, futures contracts
and foreign currency transactions (1.03) 1.98 0.18 0.65 (0.31)
- -------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations (0.98) 2.07 0.27 0.82 (0.27)
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - (0.07) (0.09) (0.11) (0.03)
From net realized gains - (0.29) (0.23) - -
In excess of net investment income - (0.10) - (0.09) -
In excess of net realized gains - - (0.13) - (0.09)
- -------------------------------------------------------------------------------------------------------------------
Total Distributions Paid - (0.46) (0.45) (0.20) (0.12)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.68 $11.66 $10.05 $10.23 $ 9.61
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN<F4> (8.41)% 21.34% 2.61% 8.61% (2.65)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $173,104 $178,210 $165,892 $181,237 $114,673
Ratio to average net assets of<F5>:
Expenses, after waivers and
reimbursements 1.25% 1.25% 1.25% 1.25% 1.25%
Expenses, before waivers and
reimbursements 1.61% 1.62% 1.63% 1.65% 1.71%
Net investment income (loss), after
waivers and reimbursements 0.75% 0.79% 0.78% 0.92% 0.47%
Net investment income (loss), before
waivers and reimbursements 0.39% 0.42% 0.40% 0.52% 0.01%
Portfolio Turnover Rate 77.59% 145.02% 190.94% 216.86% 158.31%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<F2> For the period April 6, 1994 (commencement of operations) through
March 31, 1995.
<F3> Commenced investment operations after the close of business on
March 31, 1998.
<F4> Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the investment at net asset value at the end of the period. Total return
is not annualized for periods less than one year.
<F5> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
- ---------------------
FINANCIAL HIGHLIGHTS (CONTINUED)
EQUITY FUNDS
<TABLE>
<CAPTION>
INTERNATIONAL
SELECT EQUITY
FUND
--------------------------------------------------------------------
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31, MAR. 31, MAR. 31,
1998 1998 1997 1996 1995<F2>
(UNAUDITED)
- ------------------------------------ --------------------------------------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.52 $10.37 $10.73 $ 9.78 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (1.01) 0.22 0.04 0.01 0.04
Net realized and unrealized gains (losses)
on investments, futures contracts
and foreign currency transactions (1.05) 2.19 (0.25) 0.99 (0.23)
- -------------------------------------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations (1.06) 2.41 (0.21) 1.00 (0.19)
- -------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - (0.16) (0.03) (0.02) (0.03)
From net realized gains - - - - -
In excess of net investment income - (0.10) (0.04) (0.03) -
In excess of net realized gains - - (0.08) - -
- -------------------------------------------------------------------------------------------------------------------
Total Distributions Paid - (0.26) (0.15) (0.05) (0.03)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.46 $12.52 $10.37 $10.73 $ 9.78
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN<F4> (8.51)% 23.74% (1.95)% 10.20% (1.95)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $107,378 $117,618 $108,944 $102,719 $71,958
Ratio to average net assets of<F5>:
Expenses, after waivers and
reimbursements 1.25% 1.25% 1.25% 1.25% 1.25%
Expenses, before waivers and
reimbursements 1.64% 1.64% 1.66% 1.71% 1.75%
Net investment income (loss), after
waivers and reimbursements 0.94% 0.29% 0.47% 0.12% 0.47%
Net investment income (loss), before
waivers and reimbursements 0.55% (0.10)% 0.06% (0.34)% (0.03)%%
Portfolio Turnover Rate 77.06% 98.22% 97.60% 176.71% 97.69%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
NORTHERN FUNDS Semi-Annual Report
<TABLE>
<CAPTION>
TECHNOLOGY
FUND
---------------------------------------
SIX MONTHS YEAR YEAR
ENDED ENDED ENDED
SEPT. 30, MAR. 31, MAR. 31,
1998 1998 1997
(UNAUDITED)
- ------------------------------------ ---------------------------------------
SELECTED PER SHARE DATA
<C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $17.11 $11.95 $10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss) (0.07) - -
Net realized and unrealized gains (losses)
on investments, futures contracts
and foreign currency transactions 0.45 6.06 2.10
- --------------------------------------------------------------------------------------
Total Income (Loss) from
Investment Operations 0.38 6.06 2.10
- --------------------------------------------------------------------------------------
LESS DISTRIBUTIONS PAID:
From net investment income - - -
From net realized gains - (0.90) (0.15)
In excess of net investment income - - -
In excess of net realized gains - - -
- --------------------------------------------------------------------------------------
Total Distributions Paid - (0.90) (0.15)
- --------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $17.49 $17.11 $11.95
- --------------------------------------------------------------------------------------
TOTAL RETURN<F4> 2.22% 52.62% 20.82%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period $135,937 $104,389 $43,754
Ratio to average net assets of<F5>:
Expenses, after waivers and
reimbursements 1.25% 1.25% 1.25%
Expenses, before waivers and
reimbursements 1.54% 1.59% 2.02%
Net investment income (loss), after
waivers and reimbursements (0.89)% (0.96)% (0.75)%
Net investment income (loss), before
waivers and reimbursements (1.18)% (1.30)% (1.52)%
Portfolio Turnover Rate 19.76% 74.75% 67.89%
- --------------------------------------------------------------------------------------
</TABLE>
<F2> For the period April 5, 1994 (commencement of operations) through March 31,
1995.
<F3> Assumes investment at net asset value at the beginning of the period,
reinvestment of all dividends and distributions, and a complete redemption
of the
investment at net asset value at the end of the period. Total return is not
annualized for periods less than one year.
<F4> Annualized for periods less than a full year.
See Notes to the Financial Statements.
<PAGE>
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INCOME EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
CONVERTIBLE PREFERRED
STOCKS - 48.6%
BANKING - 1.5%
60,000 National Australia Bank $ 1,598
----------
BUILDING - 1.2%
158,000 Kaufman & Broad Home Corp. 1,323
----------
COMMUNICATIONS - 4.7%
43,500 MediaOne Group, Inc. 2,431
27,000 MediaOne Group, Inc., Series D 2,535
----------
4,966
----------
CONSUMER PRODUCTS - 2.1%
40,000 Newell Financial<F2> 2,245
----------
COSMETICS - 2.1%
40,000 Estee Lauder Corp. 2,200
----------
FINANCIAL SERVICES - 11.6%
41,000 Amerus Life Holding, Inc. 994
32,000 Conseco Finance Trust IV, Series F 1,262
22,000 Finova Finance Trust 1,529
100,500 Lincoln National Corp. 2,475
36,500 Prologis Trust, Series B 1,049
36,000 Salomon Smith Barney Holdings,
Inc. (DECS)/Cincinnati Bell, Inc. 1,818
35,000 Salomon Smith Barney Holdings,
Inc./Financial Security Assurance
Holdings Ltd. 1,400
66,000 WBK Trust STRYPES 1,823
----------
12,350
----------
INSURANCE SERVICES - 1.3%
23,100 St. Paul Capital LLC 1,426
----------
MACHINERY - 2.0%
102,000 Ingersoll-Rand PRIDES 2,142
----------
MEDIA - 4.4%
68,000 Reader's Digest Association TRACES 1,415
29,000 TCI Communications, Inc. 2,364
39,000 Tribune Co. (DECS)/Learning Co.
(The), Inc. 843
----------
4,622
----------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
PAPER PRODUCTS - 1.6%
36,000 International Paper Co. $ 1,760
----------
PETROLEUM PRODUCTS - 1.3%
26,000 Unocal Capital Trust 1,355
----------
PROFESSIONAL SERVICES - 2.5%
34,000 Cendant Corp. PRIDES 850
60,000 Snyder Communications, Inc. STRYPES 1,815
----------
2,665
----------
REAL ESTATE - 1.0%
44,000 U.S. Restaurant Properties, Inc., Series A 1,097
----------
RESTAURANTS - 2.0%
40,000 Wendy's Financing I 2,098
----------
RETAIL - 4.1%
30,500 CVS Trust Automatic Common
Exchange Securities TRACES 2,486
39,000 Kmart Financing I 1,950
----------
4,436
----------
SANITARY SERVICES - 0.9%
60,000 Republic Industries, Inc., Automatic
Exchange Note 938
----------
UTILITIES - 4.3%
32,000 Texas Utilities Co. 1,800
36,000 Houston Industries, Inc./Time Warner, Inc. 2,747
----------
4,547
----------
Total Convertible Preferred Stocks
(cost $48,682) 51,768
----------
PRINCIPAL
AMOUNT
(000S)
- ---------
CONVERTIBLE BONDS - 25.7%
COMMUNICATIONS - 3.2%
$1,000 Bell Atlantic Financial Services, Inc.,
5.75%, 4/1/03<F2> 1,022
2,400 Tele-Communication International, Inc.
4.50%, 2/15/06 2,340
----------
3,362
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INCOME EQUITY FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
COMPUTERS & OFFICE MACHINES - 1.1%
$1,250 Learning Co. (The), Inc.,
5.50%, 11/1/00<F2> $ 1,150
----------
ELECTRONICS & OTHER ELECTRICAL
EQUIPMENT - 3.3%
1,300 Checkpoint Systems, Inc.,
5.25%, 11/1/05<F2> 923
1,000 Park Electrochemical Corp.,
5.50%, 3/1/06 760
800 Thermo Electron Corp.,
4.25%, 1/1/03 698
1,170 VLSI Technology, Inc.,
8.25%, 10/1/05 1,091
----------
3,472
----------
HEALTH SERVICES - 7.1%
1,750 ALZA Corp.,
5.00%, 5/1/06 2,227
450 Centocor, Inc.,
4.75%, 2/15/05 460
1,600 Chiron Corp.,
1.90%, 11/17/00<F2> 1,504
1,500 NovaCare, Inc.,
5.50%, 1/15/00 1,268
2,000 Omnicare, Inc.,
5.00%, 12/1/07<F2> 2,080
----------
7,539
----------
INDUSTRIAL PARTS & EQUIPMENT - 0.9%
1,200 ThermoTrex Corp.,
3.25%, 11/1/07 996
----------
MANUFACTURING - 2.2%
1,350 MascoTech, Inc.,
4.50%, 12/15/03 1,124
1,600 Thermo Instrument Systems, Inc.,
4.00%, 1/15/05 1,264
----------
2,388
----------
OIL & GAS - 1.0%
1,300 Loews Corp./Diamond Offshore
Drilling, Inc., 3.125%, 9/15/07 1,034
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
PHARMACEUTICALS - 1.4%
$1,800 HEALTHSOUTH Corp.,
3.25%, 4/1/03 $ 1,548
----------
RETAIL - 1.8%
1,100 Home Depot (The), Inc.,
3.25%, 10/1/01 1,921
----------
TRANSPORTATION PARTS &
EQUIPMENT - 1.2%
1,300 Magna International, Inc.,
4.875%, 2/15/05 1,313
----------
TRAVEL & LEISURE - 1.1%
1,300 Hilton Hotels Corp.,
5.00%, 5/15/06 1,151
----------
UTILITIES - 1.4%
1,600 AES Corp.,
4.50%, 8/15/05 1,432
----------
Total Convertible Bonds
(cost $28,484) 27,306
----------
NUMBER
OF SHARES
- ---------
COMMON STOCKS - 14.4%
BEVERAGES - 0.8%
15,000 Anheuser-Busch Cos., Inc. 810
BUILDING MATERIALS - 0.6%
26,000 Masco Corp. 640
COMMUNICATIONS - 1.6%
10,500 MCI WorldCom, Inc. 513
23,000 U.S. West, Inc. 1,206
----------
1,719
----------
COMPUTERS & OFFICE MACHINES - 1.2%
10,000 Hewlett-Packard Co. 529
40,000 Learning Co. (The), Inc. 793
----------
1,322
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INCOME EQUITY FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
HEALTH SERVICES - 2.0%
34,000 Chiron Corp. $ 676
8,000 Johnson & Johnson 626
11,000 Lilly (Eli) & Co. 861
----------
2,163
----------
PHARMACEUTICALS - 1.9%
6,500 Bristol-Myers Squibb Co. 675
19,000 Elan Corp. PLC ADR<F1> 1,369
----------
2,044
----------
PROFESSIONAL SERVICES - 1.5%
8,500 Automatic Data Processing, Inc. 635
21,000 Omnicom Group, Inc. 945
----------
1,580
----------
RECREATION & LEISURE SERVICES - 0.6%
25,500 Disney (The Walt) Co. 645
----------
RETAIL - 1.1%
16,000 Rite Aid Corp. 568
31,000 TJX Cos., Inc. 552
----------
1,120
----------
TOBACCO - 1.0%
22,000 Philip Morris Cos., Inc. 1,013
----------
TRANSPORTATION PARTS &
EQUIPMENT - 0.6%
14,500 Ford Motor Co. 681
----------
UTILITIES - 1.5%
5,000 Duke Energy Corp. 331
10,000 NIPSCO Industries, Inc. 329
20,000 Texas Utilities Co. 931
----------
1,591
----------
Total Common Stocks
(cost $15,218) 15,328
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 11.2%
$4,318 Berliner Handels und Frankfurter,
5.938%, 10/1/98 $ 4,318
7,547 FHLB Discount Note,
5.40%, 10/1/98 7,547
----------
Total Short-Term Investments
(cost $11,865) 11,865
----------
Total Investments - 99.9%
(cost $104,249) 106,267
Other Assets less Liabilities - 0.1% 107
----------
NET ASSETS - 100.0% $ 106,374
==========
<F2> Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At September 30,
1998, the value of these securities amounted to approximately $8,924,000 or
8.4% of net assets.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
STOCK INDEX FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 95.5%
ADVERTISING - 0.2%
1,750 Interpublic Group of Cos. (The), Inc. $ 94
2,100 Omnicom Group, Inc. 95
----------
189
----------
AEROSPACE - 1.5%
7,100 AlliedSignal, Inc. 251
12,752 Boeing (The) Co. 438
1,600 General Dynamics Corp. 80
900 Goodrich (B.F.) Co. 29
2,500 Lockheed Martin Corp.<F1> 252
900 Northrop Grumman Corp. 66
4,300 Raytheon Co. 232
2,900 United Technologies Corp. 222
----------
1,570
----------
AIRLINES - 0.3%
2,300 AMR Corp. 128
1,000 Delta Air Lines, Inc. 97
4,250 Southwest Airlines Co. 85
1,300 US Airways Group, Inc.<F1> 66
----------
376
----------
APPAREL - 0.2%
900 Fruit of the Loom, Inc., Class A<F1> 13
800 Liz Claiborne, Inc. 21
3,600 Nike, Inc., Class B 133
700 Reebok International Ltd.<F1> 9
500 Russell Corp. 13
1,500 VF Corp. 56
----------
245
----------
AUTO MANUFACTURERS - 1.5%
8,200 Chrysler Corp. 393
15,300 Ford Motor Co. 718
8,400 General Motors Corp. 460
900 Navistar International Corp. 20
1,000 PACCAR, Inc. 41
----------
1,632
----------
AUTO PARTS & EQUIPMENT - 0.3%
1,000 Cooper Tire & Rubber Co. 18
2,100 Dana Corp. 78
2,250 Genuine Parts Co. 67
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
AUTO PARTS & EQUIPMENT - 0.3% (CONT'D.)
2,000 Goodyear Tire & Rubber (The) Co. $ 103
1,500 TRW, Inc. 67
----------
333
----------
BANKS - 7.0%
8,930 Banc One Corp. 381
8,700 BankAmerica Corp. 523
3,700 BankBoston Corp. 122
1,200 Bankers Trust New York Corp. 71
9,400 Bank of New York Co., Inc. 257
3,600 BB&T Corp. 108
10,800 Chase Manhattan Corp. 467
5,700 Citigroup, Inc. 530
1,950 Comerica, Inc. 107
3,375 Fifth Third Bancorp 194
3,600 First Chicago NBD Corp. 247
12,202 First Union Corp. 624
3,600 Fleet Financial Group, Inc. 264
2,630 Huntington Bancshares, Inc. 66
5,600 KeyCorp 162
3,300 Mellon Bank Corp. 182
1,900 Mercantile Bancorp., Inc. 92
2,200 Morgan (J.P.) & Co., Inc. 186
4,200 National City Corp. 277
12,140 NationsBank Corp. 649
9,700 Norwest Corp. 347
3,800 PNC Bank Corp. 171
2,700 Regions Financial Corp. 98
1,400 Republic New York Corp. 55
2,000 State Street Corp. 109
2,200 Summit Bancorp 83
2,600 SunTrust Banks, Inc. 161
3,350 Synovus Financial Corp. 66
9,365 U.S. Bancorp 333
2,600 Wachovia Corp. 222
1,100 Wells Fargo & Co. 391
----------
7,545
----------
BEVERAGES - 2.6%
6,100 Anheuser-Busch Cos., Inc. 329
900 Brown-Forman Corp., Class B 54
31,200 Coca-Cola (The) Co. 1,798
500 Coors (Adolph) Co., Class B 23
18,700 PepsiCo, Inc. 551
----------
2,755
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
BIOTECHNOLOGY - 0.7%
3,200 Amgen, Inc.<F1> $ 242
7,600 Monsanto Co. 429
3,100 Pioneer Hi-Bred International, Inc. 81
----------
752
----------
BUILDING MATERIALS - 0.1%
500 Armstrong World Industries, Inc. 27
4,300 Masco Corp. 106
700 Owens Corning 22
----------
155
----------
CHEMICALS - 1.5%
2,900 Air Products and Chemicals, Inc. 86
2,800 Dow Chemical Co. 239
14,300 du Pont (E.I.) de Nemours & Co. 803
1,000 Eastman Chemical Co. 50
1,800 Engelhard Corp. 32
1,000 Grace (W.R.) & Co. 12
700 Great Lakes Chemical Corp. 27
1,200 Hercules, Inc. 36
1,600 Morton International, Inc. 35
800 Nalco Chemical Co. 24
2,000 Praxair, Inc. 65
2,300 Rohm & Haas Co. 64
2,200 Sherwin-Williams Co. 48
1,300 Sigma-Aldrich Corp. 38
1,700 Union Carbide Corp. 73
----------
1,632
----------
COMMERICAL SERVICES - 0.6%
1,300 Block (H&R), Inc. 54
10,864 Cendant Corp.<F1> 127
1,000 Deluxe Corp. 28
2,200 Dun & Bradstreet (The) Corp. 59
1,600 Ecolab, Inc. 46
1,900 Equifax, Inc. 68
2,100 Paychex, Inc. 108
3,300 Service Corp. International 105
1,600 Union Planters Corp. 80
----------
675
----------
COMPUTERS - 6.3%
4,500 3Com Corp.<F1> 135
1,700 Apple Computer, Inc.<F1> 65
2,500 Ascend Communications, Inc.<F1> 114
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMPUTERS - 6.3% (CONT'D.)
2,100 Cabletron Systems, Inc.<F1> $ 24
900 Ceridian Corp.<F1> 52
19,675 Cisco Systems, Inc.<F1> 1,216
21,146 Compaq Computer Corp.<F1> 669
2,000 Computer Sciences Corp. 109
600 Data General Corp.<F1> 7
16,100 Dell Computer Corp.<F1> 1,059
6,200 Electronic Data Systems Corp. 206
6,300 EMC Corp.<F1> 360
2,000 Gateway 2000, Inc.<F1> 104
13,100 Hewlett-Packard Co. 693
11,800 International Business Machines Corp. 1,510
3,100 Seagate Technology, Inc.<F1> 78
2,400 Silicon Graphics, Inc.<F1> 23
4,800 Sun Microsystems, Inc.<F1> 239
3,200 Unisys Corp.<F1> 72
----------
6,735
----------
CONSUMER PRODUCTS - 1.5%
30,700 Philip Morris Cos., Inc. 1,414
4,200 RJR Nabisco Holdings Corp. 106
2,300 UST, Inc. 68
----------
1,588
----------
COSMETICS/PERSONAL CARE - 2.3%
700 Alberto-Culver Co., Class B 17
3,400 Avon Products, Inc. 95
3,700 Colgate-Palmolive Co. 253
14,200 Gillette Co. 543
1,400 International Flavors & Fragrances, Inc. 46
7,000 Kimberly-Clark Corp. 284
17,000 Procter & Gamble Co. 1,206
----------
2,444
----------
DIVERSIFIED FINANCIAL SERVICES - 2.2%
5,800 American Express Co. 450
4,328 Associates First Capital Corp. 282
1,400 Bear Stearns (The) Cos., Inc. 43
800 Capital One Financial Corp. 83
3,400 Charles Schwab (The) Corp. 134
1,400 Countrywide Credit Industries, Inc. 58
3,200 Franklin Resources, Inc. 96
6,246 Household International, Inc. 234
1,500 Lehman Bros. Holdings, Inc. 42
6,375 MBNA Corp. 183
4,400 Merrill Lynch & Co., Inc. 209
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 2.2% (CONT'D.)
7,550 Morgan Stanley Dean Witter & Co. $ 325
1,200 Providian Corp. 102
2,100 SLM Holding Corp. 68
----------
2,309
----------
ELECTRIC - 2.7%
1,700 Ameren Corp. 71
2,400 American Electric Power Co. 117
1,900 Baltimore Gas & Electric Co. 63
1,900 Carolina Power & Light Co. 88
2,700 Central & South West Corp. 77
2,000 Cinergy Corp. 77
3,000 Consolidated Edison Co. of New York, Inc. 156
2,500 Dominion Resources, Inc. 112
1,800 DTE Energy Co. 81
4,544 Duke Power Co. 301
4,500 Edison International 116
3,100 Entergy Corp. 95
3,000 FirstEnergy Corp. 93
2,300 FPL Group, Inc. 160
1,600 GPU, Inc. 68
3,774 Houston Industries, Inc. 117
2,400 Niagara Mohawk Power Corp.<F1> 37
1,900 Northern States Power Co. 53
4,800 PG&E Corp. 153
1,900 PP&L Resources, Inc. 49
3,800 PacifiCorp 74
2,800 Peco Energy Co. 102
2,900 Public Service Enterprise Group, Inc. 115
8,800 Southern Co. 259
3,512 Texas Utilities Co. 164
2,700 Unicom Corp. 101
----------
2,899
----------
ELECTRICAL COMPONENTS & EQUIPMENT - 0.4%
2,700 AMP, Inc. 97
5,600 Emerson Electric Co. 348
----------
445
----------
ELECTRONICS - 0.3%
700 Bemis Co., Inc. 25
600 EG&G, Inc. 14
600 General Signal Corp. 20
1,600 Honeywell, Inc. 103
1,100 Johnson Controls, Inc. 51
600 Millipore Corp. 11
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
ELECTRONICS - 0.3% (CONT'D.)
1,350 Parker-Hannifin Corp. $ 40
600 Perkin-Elmer Corp. 41
650 Tektronix, Inc. 10
700 Thomas & Betts Corp. 27
----------
342
----------
ENGINEERING & CONSTRUCTION - 0.0%
1,000 Fluor Corp. 41
500 Foster Wheeler Corp. 7
----------
48
----------
ENTERTAINMENT - 0.1%
1,300 Harrah's Entertainment, Inc.<F1> 17
2,300 Mirage Resorts, Inc.<F1> 39
----------
56
----------
ENVIRONMENTAL CONTROL - 0.4%
2,300 Browning-Ferris Industries, Inc. 70
7,249 Waste Management, Inc. 348
----------
418
----------
FOOD - 2.5%
3,100 Albertson's, Inc. 168
3,500 American Stores Co. 113
7,534 Archer-Daniels-Midland Co. 126
3,600 Bestfoods 174
5,700 Campbell Soup Co. 286
6,200 ConAgra, Inc. 167
2,000 General Mills, Inc. 140
500 Great Atlantic & Pacific Tea Co., Inc. 12
4,600 Heinz (H.J.) Co. 235
1,800 Hershey Foods Corp. 123
5,100 Kellogg Co. 168
3,200 Kroger Co. 160
1,700 Quaker Oats (The) Co. 100
4,000 Ralston-Ralston Purina Group 117
5,900 Sara Lee Corp. 319
1,500 SUPERVALU, Inc. 35
4,300 Sysco Corp. 101
1,900 Winn-Dixie Stores, Inc. 71
1,500 Wrigley (Wm.) Jr. Co. 114
----------
2,729
----------
FOREST PRODUCTS & PAPER - 0.7%
700 Boise Cascade Co. 18
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
FOREST PRODUCTS & PAPER - 0.7% (CONT'D.)
1,200 Champion International Corp. $ 38
2,800 Fort James Corp. 92
1,200 Georgia-Pacific Corp. 55
3,900 International Paper Co. 182
1,400 Louisiana-Pacific Corp. 29
1,300 Mead Corp. 38
400 Potlatch Corp. 14
700 Temple-Inland, Inc. 33
900 Union Camp Corp. 35
1,300 Westvaco Corp. 31
2,500 Weyerhaeuser Co. 105
1,400 Willamette Industries, Inc. 40
----------
710
----------
GAS - 0.1%
300 Eastern Enterprises 13
600 NICOR, Inc. 25
400 ONEOK, Inc. 14
400 Peoples Energy Corp. 14
3,003 Sempra Energy 78
----------
144
----------
HAND/MACHINE TOOLS - 0.1%
1,200 Black & Decker Corp. 50
1,200 Grainger (W.W.), Inc. 50
700 Snap-On, Inc. 22
1,100 Stanley Works (The) 33
----------
155
----------
HEALTH CARE - 2.8%
800 Allergan, Inc. 47
700 Bard (C.R.), Inc. 26
700 Bausch & Lomb, Inc. 28
3,600 Baxter International, Inc. 214
3,100 Becton, Dickinson & Co. 127
1,400 Biomet, Inc. 49
2,500 Boston Scientific Corp.<F1> 128
8,200 Columbia/HCA Healthcare Corp. 165
1,900 Guidant Corp. 141
600 HCR Manor Care<F1> 18
5,300 HEALTHSOUTH Corp.<F1> 56
2,100 Humana, Inc.<F1> 34
17,000 Johnson & Johnson 1,330
900 Mallinckrodt, Inc. 18
800 Manor Care, Inc. 26
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HEALTH CARE - 2.8% (CONT'D.)
5,900 Medtronic, Inc. $ 341
1,100 St. Jude Medical, Inc.<F1> 25
3,900 Tenet Healthcare Corp.<F1> 112
2,500 United Healthcare Corp. 88
1,000 United States Surgical Corp. 42
----------
3,015
----------
HOLDING COMPANIES/DIVERSIFIED - 0.2%
4,400 Seagram (The) Co. Ltd. 126
2,100 Textron, Inc. 128
----------
254
----------
HOME BUILDERS - 0.1%
800 Centex Corp. 28
500 Fleetwood Enterprises, Inc. 15
500 Kaufman & Broad Home Corp. 12
500 Pulte Corp. 12
----------
67
----------
HOME FURNISHINGS - 0.1%
1,200 Maytag Corp. 57
1,000 Whirlpool Corp. 47
----------
104
----------
HOUSEHOLD PRODUCTS - 0.9%
900 American Greetings Corp., Class A 36
1,500 Avery Dennison Corp. 66
1,300 Clorox (The) Co. 107
2,200 Fortune Brands, Inc. 65
500 Jostens, Inc. 10
1,100 Moore Corp. Ltd. 12
2,100 Newell Co. 97
1,900 Rubbermaid, Inc. 45
800 Tupperware Corp. 9
8,100 Unilever N.V. NYS 496
----------
943
----------
INSURANCE - 4.3%
1,800 Aetna, Inc. 125
10,500 Allstate Corp. 438
3,221 American General Corp. 206
13,225 American International Group, Inc. 1,018
2,150 Aon Corp. 139
2,100 Chubb (The) Corp. 132
2,700 CIGNA Corp. 179
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
INSURANCE - 4.3% (CONT'D.)
2,100 Cincinnati Financial Corp. $ 65
3,966 Conseco, Inc. 121
1,000 General Re Corp. 203
3,000 Hartford Financial Services Group (The), Inc. 142
1,300 Jefferson-Pilot Corp. 79
1,300 Lincoln National Corp. 107
1,500 Loews Corp. 127
3,250 Marsh & McLennan Cos., Inc. 162
1,300 MBIA, Inc. 70
1,400 MGIC Investment Corp. 52
900 Progressive Corp. 101
1,700 Provident Companies, Inc. 57
1,800 SAFECO Corp. 75
2,976 St. Paul Cos., Inc. 97
2,450 SunAmerica, Inc. 149
1,800 Torchmark Corp. 65
800 Transamerica Corp. 85
14,655 Travelers Group, Inc. 550
1,700 UNUM Corp. 82
----------
4,626
----------
IRON/STEEL - 0.1%
2,500 Allegheny Teledyne, Inc. 45
1,400 Armco, Inc.<F1> 7
1,600 Bethlehem Steel Corp.<F1> 13
1,100 Nucor Corp. 45
1,100 USX - U.S. Steel Group 26
----------
136
----------
LEISURE TIME - 0.0%
1,300 Brunswick Corp. 17
----------
LODGING - 0.1%
3,100 Hilton Hotels Corp. 53
3,200 Marriott International, Inc. 76
----------
129
----------
MACHINERY - 0.6%
300 Briggs & Stratton Corp. 12
900 Case Corp. 20
4,600 Caterpillar, Inc. 205
500 Cummins Engine Co., Inc. 15
3,100 Deere & Co. 94
2,800 Dover Corp. 86
600 Harnischfeger Industries, Inc. 7
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
MACHINERY - 0.6% (CONT'D.)
2,100 Ingersoll-Rand Co. $ 80
800 McDermott International, Inc. 22
500 Milacron, Inc. 8
100 NACCO Industries, Inc. 10
2,100 Thermo Electron Corp.<F1> 30
----------
589
----------
MEDIA - 3.2%
9,100 CBS Corp.<F1> 221
3,100 Clear Channel Communications, Inc.<F1> 147
4,700 Comcast Corp., Class A 221
25,900 Disney (The Walt) Co. 656
1,800 Donnelley (R.R.) & Sons Co. 63
1,200 Dow Jones & Co., Inc. 56
3,600 Gannett Co., Inc. 193
900 King World Productions, Inc. 24
1,000 Knight-Ridder, Inc. 45
1,300 McGraw Hill Cos., Inc. 103
7,700 MediaOne Group, Inc. 342
700 Meredith Corp. 22
2,400 New York Times Co., Class A 66
6,600 Tele-Communications, Inc.<F1> 258
7,600 Time Warner, Inc. 665
1,100 Times Mirror Co., Class A 58
1,500 Tribune Co. 75
4,500 Viacom, Inc., Class B<F1> 261
----------
3,476
----------
METALS - DIVERSIFIED - 0.4%
2,900 Alcan Aluminium Ltd. 68
2,400 Aluminum Co. of America 170
500 ASARCO, Inc. 10
2,300 Freeport-McMoRan Copper & Gold, Inc.,
Class B 27
2,100 Inco Ltd. 22
700 Phelps Dodge Corp. 37
3,200 Placer Dome, Inc. 44
900 Reynolds Metals Co. 45
----------
423
----------
METAL FABRICATE/HARDWARE - 0.0%
800 Timken (The) Co. 12
1,200 Worthington Industries, Inc. 15
----------
27
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
MINING - 0.2%
4,700 Barrick Gold Corp. $ 94
2,900 Battle Mountain Gold Co. 17
1,200 Cyprus Amax Minerals Co. 16
2,700 Homestake Mining Co. 33
1,944 Newmont Mining Corp. 47
----------
207
----------
MISCELLANEOUS MANUFACTURING - 4.8%
400 Aeroquip-Vickers, Inc. 12
1,500 Cooper Industries, Inc. 61
2,900 Corning, Inc. 85
825 Crane Co. 19
4,100 Eastman Kodak Co. 317
900 Eaton Corp. 56
400 FMC Corp.<F1> 21
41,100 General Electric Co. 3,270
3,200 Illinois Tool Works, Inc. 174
1,500 ITT Industries, Inc.<F1> 51
5,100 Minnesota Mining & Manufacturing Co. 376
500 National Service Industries, Inc. 16
1,600 Pall Corp. 36
600 Polaroid Corp. 15
2,200 PPG Industries, Inc. 120
1,100 Raychem Corp. 27
2,100 Tenneco, Inc. 69
7,400 Tyco International Ltd. 408
----------
5,133
----------
OFFICE/BUSINESS EQUIPMENT - 0.5%
1,000 Harris Corp. 32
3,500 Pitney Bowes, Inc. 184
4,200 Xerox Corp. 356
----------
572
----------
OIL & GAS PRODUCERS - 6.8%
1,100 Amerada Hess Corp. 63
12,100 Amoco Corp. 652
1,500 Anadarko Petroleum Corp. 59
1,200 Apache Corp. 32
1,000 Ashland, Inc. 46
4,100 Atlantic Richfield Co. 291
2,257 Burlington Resources, Inc. 84
8,300 Chevron Corp. 698
2,700 Coastal Corp. 91
30,800 Exxon Corp. 2,162
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
OIL & GAS PRODUCERS - 6.8% (CONT'D.)
600 Helmerich & Payne, Inc. $ 13
600 Kerr-McGee Corp. 27
9,900 Mobil Corp. 752
4,600 Occidental Petroleum Corp. 99
1,300 Oryx Energy Co.<F1> 17
600 Pennzoil Co. 21
3,300 Phillips Petroleum Co. 149
1,100 Rowan Cos., Inc.<F1> 12
27,100 Royal Dutch Petroleum Co. ADR 1,291
1,200 Sun Co., Inc. 38
6,800 Texaco, Inc. 427
3,169 Union Pacific Resources Group, Inc. 39
3,100 Unocal Corp. 112
3,700 USX - Marathon Group 131
----------
7,306
----------
OIL & GAS SERVICES - 0.6%
3,990 Baker Hughes, Inc. 84
2,200 Dresser Industries, Inc. 67
3,300 Halliburton Co. 94
6,900 Schlumberger Ltd. 347
----------
592
----------
PACKAGING & CONTAINERS - 0.1%
400 Ball Corp. 14
1,600 Crown Cork & Seal Co., Inc. 43
2,000 Owens-Illinois, Inc.<F1> 50
1,028 Sealed Air Corp.<F1> 33
1,300 Stone Container Corp. 11
----------
151
----------
PHARMACEUTICALS - 9.4%
19,500 Abbott Laboratories 847
1,100 ALZA Corp.<F1> 48
16,600 American Home Products Corp. 869
12,600 Bristol-Myers Squibb Co. 1,309
1,700 Cardinal Health, Inc. 176
13,900 Lilly (Eli) & Co. 1,089
15,100 Merck & Co., Inc. 1,956
16,500 Pfizer, Inc. 1,748
6,400 Pharmacia & Upjohn, Inc. 321
9,300 Schering-Plough Corp. 963
10,400 Warner-Lambert Co. 785
----------
10,111
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
STOCK INDEX FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
PIPELINES - 0.5%
1,050 Columbia Gas System, Inc. $ 62
1,200 Consolidated Natural Gas Co. 65
4,200 Enron Corp. 222
1,400 Sonat, Inc. 42
5,400 Williams (The) Cos., Inc. 155
----------
546
----------
RETAIL - 5.3%
1,900 Autozone, Inc.<F1> 47
1,300 Circuit City Stores, Inc. 43
1,400 Consolidated Stores Corp.<F1> 27
2,700 Costco Cos., Inc. 128
4,900 CVS Corp. 215
1,800 Darden Restaurants, Inc. 29
5,600 Dayton-Hudson Corp. 200
1,400 Dillard's, Inc., Class A 40
2,350 Dollar General Corp. 63
2,700 Federated Department Stores, Inc. 98
1,900 Fred Meyer, Inc.<F1> 74
5,000 Gap (The), Inc. 264
900 Harcourt General, Inc. 44
18,600 Home Depot (The), Inc. 735
1,700 Ikon Office Solutions, Inc. 12
6,200 Kmart Corp.<F1> 74
2,000 Kohl's Corp.<F1> 78
2,900 Limited (The), Inc. 64
500 Longs Drug Stores, Inc. 20
4,400 Lowe's Cos., Inc. 140
2,900 May Department Stores Co. 149
8,700 McDonald's Corp. 519
1,900 Nordstrom, Inc. 47
3,200 Penney (J.C.) Co., Inc. 144
800 Pep Boys - Manny, Moe & Jack 11
3,300 Rite Aid Corp. 117
5,000 Sears, Roebuck & Co. 221
1,300 Tandy Corp. 70
4,000 TJX Cos., Inc. 71
3,500 Toys "R" Us, Inc.<F1> 56
1,930 Tricon Global Restaurants, Inc.<F1> 75
1,700 Venator Group, Inc. 15
28,300 Wal-Mart Stores, Inc. 1,546
6,300 Walgreen Co. 277
1,600 Wendy's International, Inc. 35
----------
5,748
----------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SAVINGS & LOANS - 0.3%
700 Golden West Financial Corp. $ 57
1,500 H.F. Ahmanson & Company 84
4,865 Washington Mutual, Inc. 164
----------
305
----------
SEMICONDUCTORS - 2.6%
1,800 Advanced Micro Devices, Inc.<F1> 33
4,600 Applied Materials, Inc.<F1> 116
21,200 Intel Corp. 1,818
1,100 KLA-Tencor Corp.<F1> 27
1,800 LSI Logic Corp.<F1> 23
2,700 Micron Technology, Inc. 82
7,600 Motorola, Inc. 325
2,100 National Semiconductor Corp.<F1> 20
2,500 Rockwell International Corp. 90
4,900 Texas Instruments, Inc. 259
----------
2,793
----------
SOFTWARE - 4.7%
800 Adobe Systems, Inc. 28
600 Autodesk, Inc. 16
3,800 Automatic Data Processing, Inc. 284
2,600 BMC Software, Inc.<F1> 156
7,050 Computer Associates International, Inc. 261
5,600 First Data Corp. 132
5,400 HBO & Co. 156
2,100 IMS Health, Inc. 130
31,200 Microsoft Corp.<F1> 3,444
4,500 Novell, Inc.<F1> 55
12,350 Oracle Corp.<F1> 359
3,400 Parametric Technology Corp.<F1> 34
300 Shared Medical Systems Corp. 16
----------
5,071
----------
TELECOMMUNICATION EQUIPMENT - 2.0%
7,300 AirTouch Communications, Inc.<F1> 416
1,150 Andrew Corp.<F1> 15
2,200 Frontier Corp. 60
1,900 General Instrument Corp.<F1> 41
16,600 Lucent Technologies, Inc. 1,146
3,600 Nextel Communications, Inc.<F1> 73
8,220 Northern Telecom Ltd. 263
1,000 Scientific-Atlanta, Inc. 21
2,400 Tellabs, Inc.<F1> 96
----------
2,131
----------
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
STOCK INDEX FUND (continued)
NUMBER OF VALUE
SHARES (000S)
- ---------------------------------------------------------------------------
TELEPHONE - 7.0%
3,500 Alltel Corp. $ 166
13,900 Ameritech Corp. 659
22,800 AT&T Corp. 1,332
19,608 Bell Atlantic Corp. 950
12,400 BellSouth Corp. 933
12,200 GTE Corp. 671
22,419 MCI WorldCom, Inc.<F1> 1,096
23,256 SBC Communications, Inc. 1,033
5,400 Sprint Corp. 389
6,296 US West Communications Group 330
----------
7,559
----------
TEXTILES - 0.0%
200 Springs Industries, Inc., Class A 7
----------
TOYS - 0.1%
1,650 Hasbro, Inc. 48
3,700 Mattel, Inc. 104
----------
152
----------
TRANSPORTATION SERVICES - 0.6%
6,000 Burlington Northern Santa Fe Corp. 192
2,800 CSX Corp. 118
1,840 FDX Corp.<F1> 73
4,200 Laidlaw, Inc. 40
4,800 Norfolk Southern Corp. 139
3,100 Union Pacific Corp. 132
----------
694
----------
TRUCKING & LEASING - 0.0%
900 Ryder System, Inc. 23
----------
U.S. GOVERNMENT AGENCIES - 1.1%
13,100 Fannie Mae 842
8,600 Freddie Mac 425
----------
1,267
----------
Total Common Stocks
(cost $94,920) 103,055
----------
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 4.2%
$4,128 Berliner Handels und Frankfurter,
5.938%, 10/1/98 $ 4,128
380 U.S. Treasury Bill,
4.63%, 1/7/99<F2> 375
----------
Total Short-Term Investments
(cost $4,503) 4,503
----------
Total Investments - 99.7%
(cost $99,423) 107,558
Other Assets less Liabilities - 0.3% 373
----------
NET ASSETS - 100.0% $ 107,931
==========
OPEN FUTURES CONTRACTS:
Contract Unrealized
Number of Amount Contract Contract Loss
Type Contracts (000s) Position Exp. (000s)
- ------------------------------------------------------------------------------
S&P 500 9 $2,335 Long 12/98 $26
S&P 500 MINI 39 2,029 Long 12/98 28
---
$54
===
<F2> Security pledged as collateral to cover margin requirements for open
futures contracts.
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
GROWTH EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 96.1%
ADVERTISING - 1.5%
43,500 Interpublic Group of Cos. (The), Inc. $ 2,346
140,000 Snyder Communications, Inc.<F1> 4,690
----------
7,036
----------
BANKS - 4.5%
27,700 Citigroup, Inc. 2,574
142,625 Fifth Third Bancorp 8,201
45,000 NationsBank Corp. 2,408
149,300 State Street Corp. 8,146
----------
21,329
----------
BEVERAGES - 3.3%
28,000 Anheuser-Busch Cos., Inc. 1,512
183,500 Coca-Cola (The) Co. 10,574
115,000 PepsiCo, Inc. 3,385
----------
15,471
----------
CHEMICALS - 0.6%
54,800 du Pont (E.I.) de Nemours & Co. 3,076
----------
COMMERCIAL SERVICES - 2.3%
215,000 Accustaff, Inc.<F1> 3,131
50,000 Cintas Corp. 2,506
104,200 Paychex, Inc. 5,373
----------
11,010
----------
COMPUTERS - 6.1%
121,725 Cisco Systems, Inc.<F1> 7,524
126,600 Computer Sciences Corp.<F1> 6,900
37,000 Dell Computer Corp.<F1> 2,433
115,700 EMC Corp.<F1> 6,617
41,000 International Business Machines Corp. 5,248
----------
28,722
----------
CONSUMER PRODUCTS - 1.8%
133,100 Philip Morris Cos., Inc. 6,131
80,000 UST, Inc. 2,365
----------
8,496
----------
COSMETICS/PERSONAL CARE - 1.5%
51,000 Gillette Co. 1,951
73,900 Procter & Gamble Co. 5,242
----------
7,193
----------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 2.9%
37,400 American Express Co. $ 2,903
91,200 Merrill Lynch & Co., Inc. 4,321
70,200 Price (T. Rowe) Associates, Inc. 2,062
110,000 Schwab (The Charles) Corp. 4,331
----------
13,617
----------
ELECTRIC - 1.2%
86,600 Cinergy Corp. 3,313
44,200 New Century Energies, Inc. 2,152
----------
5,465
----------
ELECTRICAL COMPONENTS & EQUIPMENT - 0.4%
31,000 Emerson Electric Co. 1,930
----------
ELECTRONICS - 0.7%
67,200 Solectron Corp.<F1> 3,226
----------
HEALTH CARE - 6.8%
104,000 Becton, Dickinson and Co. 4,277
64,500 Guidant Corp. 4,789
310,350 Health Management Associates, Inc.<F1> 5,664
190,000 HEALTHSOUTH Corp.<F1> 2,007
111,700 Johnson & Johnson 8,741
121,400 Medtronic, Inc. 7,026
----------
32,504
----------
HOUSEHOLD PRODUCTS - 0.7%
75,000 Newell Co. 3,455
----------
INSURANCE - 4.0%
48,600 Allstate Corp. 2,026
121,950 American International Group, Inc. 9,390
81,700 MBIA, Inc. 4,386
54,000 Travelers Group, Inc. 2,025
26,000 Nationwide Financial Services, Inc. 1,181
----------
19,008
----------
MEDIA - 1.2%
135,300 Disney (The Walt) Co. 3,425
27,000 Time Warner, Inc. 2,364
----------
5,789
----------
MISCELLANEOUS MANUFACTURING - 3.7%
178,100 General Electric Co. 14,170
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
GROWTH EQUITY FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
MISCELLANEOUS MANUFACTURING - 3.7% (CONT'D.)
63,700 Tyco International Ltd. $ 3,519
----------
17,689
----------
OFFICE/BUSINESS EQUIPMENT - 0.4%
20,000 Xerox Corp. 1,695
----------
OIL & GAS PRODUCERS - 6.4%
65,000 Chevron Corp. 5,464
182,000 Exxon Corp. 12,774
55,100 Mobil Corp. 4,184
165,900 Royal Dutch Petroleum Co. ADR 7,901
----------
30,323
----------
OIL & GAS SERVICES - 1.7%
95,900 Schlumberger Ltd. 4,825
96,900 Transocean Offshore, Inc. 3,361
----------
8,186
----------
PHARMACEUTICALS - 13.8%
76,500 Bristol-Myers Squibb Co. 7,946
49,500 Cardinal Health, Inc. 5,111
128,875 Elan Corp. PLC ADR<F1> 9,287
114,300 Lilly (Eli) & Co. 8,951
48,000 Merck & Co., Inc. 6,219
107,000 Pfizer, Inc. 11,335
52,400 Schering-Plough Corp. 5,427
148,800 Warner-Lambert Co. 11,234
----------
65,510
----------
RESTAURANTS - 1.5%
199,500 Starbucks Corp.<F1> 7,219
----------
RETAIL - 11.2%
137,000 Dayton Hudson Corp. 4,898
66,800 Gap (The), Inc. 3,524
336,200 Home Depot (The), Inc. 13,280
156,400 Kohl's Corp.<F1> 6,100
150,000 Staples, Inc.<F1> 4,406
236,200 Wal-Mart Stores, Inc. 12,902
179,000 Walgreen Co. 7,887
----------
52,997
----------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SEMICONDUCTORS - 2.1%
89,300 Intel Corp. $ 7,657
39,500 Texas Instruments, Inc. 2,084
----------
9,741
----------
SOFTWARE - 6.5%
158,000 HBO & Co. 4,562
140,800 Microsoft Corp.<F1> 15,497
87,600 Network Associates, Inc.<F1> 3,110
169,500 PeopleSoft, Inc.<F1> 3,899
126,200 Siebel Systems, Inc.<F1> 3,620
----------
30,688
----------
TELECOMMUNICATION EQUIPMENT - 1.8%
72,600 Lucent Technologies, Inc. 5,014
89,150 Tellabs, Inc.<F1> 3,549
----------
8,563
----------
TELEPHONE - 5.1%
83,100 Ameritech Corp. 3,937
67,900 AT&T Corp. 3,968
126,400 Bell Atlantic Corp. 6,123
53,000 BellSouth Corp. 3,988
82,000 MCI WorldCom, Inc.<F1> 4,008
49,000 SBC Communications, Inc. 2,177
----------
24,201
----------
U.S. GOVERNMENT AGENCIES - 2.4%
82,600 Fannie Mae 5,307
124,500 Freddie Mac 6,155
----------
11,462
----------
Total Common Stocks
(cost $367,340) 455,601
----------
See Notes to the Financial Statements
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
GROWTH EQUITY FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.6%
$16,287 Berliner Handels und Frankfurter,
5.938%, 10/1/98 $ 16,287
765 U.S. Treasury Bill,
5.46%, 12/17/98<F2> 758
----------
Total Short-Term Investments
(cost $17,045) 17,045
----------
Total Investments - 99.7%
(cost $384,385) 472,646
Other Assets less Liabilities - 0.3% 1,555
----------
NET ASSETS - 100.0% $ 474,201
==========
OPEN FUTURES CONTRACTS:
Contract Unrealized
Number of Amount Contract Contract Loss
Type Contracts (000s) Position Exp. (000s)
- --------------------------------------------------------------------------------
S&P 500 51 $13,082 Long 12/98 $248
====
<F2> Security pledged as collateral to cover margin requirements for open
futures contracts.
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SELECT EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 98.1%
ADVERTISING - 0.4%
15,000 Snyder Communications, Inc.<F1> $ 502
AIRLINES - 0.3%
20,000 Southwest Airlines Co. 400
BANKS - 3.8%
7,000 Chase Manhattan Corp. 303
3,500 Citigroup, Inc. 325
14,000 First Union Corp. 717
10,000 NationsBank Corp. 535
28,000 Norwest Corp. 1,003
16,500 State Street Corp. 900
3,100 Wells Fargo & Co. 1,101
----------
4,884
----------
BEVERAGES - 3.8%
37,000 Anheuser-Busch Cos., Inc. 1,998
38,000 Coca-Cola (The) Co. 2,190
23,500 PepsiCo, Inc. 692
----------
4,880
----------
BIOTECHNOLOGY - 0.4%
6,000 Amgen, Inc.<F1> 453
----------
CHEMICALS - 0.7%
15,500 du Pont (E.I.) de Nemours & Co. 870
----------
COMMERCIAL SERVICES - 1.8%
44,000 Paychex, Inc. 2,269
----------
COMPUTERS - 9.0%
53,250 Cisco Systems, Inc.<F1> 3,292
36,000 Computer Sciences Corp.<F1> 1,962
45,000 EMC Corp.<F1> 2,573
15,000 International Business Machines Corp. 1,920
16,500 Vodafone Group PLC ADR 1,860
----------
11,607
----------
CONSUMER PRODUCTS - 0.9%
26,500 Philip Morris Cos., Inc. 1,221
----------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COSMETICS/PERSONAL CARE - 1.5%
16,000 Gillette Co. $ 612
19,000 Procter & Gamble Co. 1,348
----------
1,960
----------
DIVERSIFIED FINANCIAL SERVICES - 0.8%
7,000 Morgan Stanley Dean Witter & Co. 301
25,000 Price (T. Rowe) Associates, Inc. 734
----------
1,035
----------
ELECTRICAL COMPONENTS & EQUIPMENT - 0.4%
15,000 American Power Conversion Corp.<F1> 565
----------
HEALTH CARE - 2.9%
4,000 Genentech, Inc.<F1> 288
40,000 Health Management Associates, Inc.<F1> 730
18,000 HEALTHSOUTH Corp.<F1> 190
25,300 Johnson & Johnson 1,980
15,000 Omnicare, Inc. 529
----------
3,717
----------
HOUSEHOLD PRODUCTS - 0.6%
12,000 Unilever N.V. NYS 735
----------
INSURANCE - 2.9%
12,000 Allstate Corp. 500
26,250 American International Group, Inc. 2,021
10,500 Progressive Corp. 1,184
----------
3,705
----------
MEDIA - 2.2%
50,000 Disney (The Walt) Co. 1,266
12,000 MediaOne Group, Inc.<F1> 533
12,500 Time Warner, Inc. 1,094
----------
2,893
----------
MISCELLANEOUS MANUFACTURING - 6.8%
69,000 General Electric Co. 5,490
50,000 Pall Corp. 1,109
38,500 Tyco International Ltd. 2,127
----------
8,726
----------
OIL & GAS PRODUCERS - 6.8%
20,000 Exxon Corp. 1,404
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SELECT EQUITY FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
OIL & GAS PRODUCERS - 6.8% (CONT'D.)
47,800 Mobil Corp. $ 3,630
135,000 Newpark Resources, Inc.<F1> 928
5,500 Royal Dutch Petroleum Co. ADR 262
36,500 Texaco, Inc. 2,288
9,000 Transocean Offshore, Inc. 312
----------
8,824
----------
PHARMACEUTICALS - 17.5%
36,000 Abbott Laboratories 1,564
29,500 Bristol-Myers Squibb Co. 3,064
23,000 Cardinal Health, Inc. 2,375
39,000 Elan Corp. PLC ADR<F1> 2,810
15,000 Lilly (Eli) & Co. 1,175
8,000 Merck & Co., Inc. 1,037
40,000 Pfizer, Inc. 4,238
33,000 Schering-Plough Corp. 3,418
39,300 Warner-Lambert Co. 2,967
----------
22,648
----------
PIPELINES - 1.4%
33,500 Enron Corp. 1,769
----------
PROFESSIONAL SERVICES - 0.2%
12,500 Sylvan Learning Systems, Inc.<F1> 292
----------
RECREATION & LEISURE SERVICES - 1.0%
40,000 Carnival Corp., Class A 1,273
----------
RESTAURANTS - 0.5%
20,000 Starbucks Corp.<F1> 724
----------
RETAIL - 13.3%
8,000 Abercrombie & Fitch Co., Class A<F1> 352
12,000 Albertson's, Inc. 649
15,000 CVS Corp. 657
36,000 Gap (The), Inc. 1,899
44,500 Home Depot (The), Inc. 1,758
53,000 Kohl's Corp.<F1> 2,067
70,000 Staples, Inc.<F1> 2,056
80,000 Walgreen Co. 3,525
76,600 Wal-Mart Stores, Inc. 4,184
----------
17,147
----------
SEMICONDUCTORS - 1.5%
23,000 Intel Corp. 1,972
----------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SOFTWARE - 5.6%
23,000 BMC Software, Inc.<F1> $ 1,381
19,500 Fiserv, Inc.<F1> 898
36,500 Microsoft Corp.<F1> 4,017
15,000 Network Associates, Inc.<F1> 533
15,000 Oracle Corp.<F1> 437
----------
7,266
----------
TELECOMMUNICATION EQUIPMENT - 1.5%
20,000 Lucent Technologies, Inc. 1,381
15,000 Tellabs, Inc.<F1> 597
----------
1,978
----------
TELEPHONE - 5.2%
64,500 Ameritech Corp. 3,056
16,200 BellSouth Corp. 1,219
51,000 MCI WorldCom, Inc.<F1> 2,493
----------
6,768
----------
U.S. GOVERNMENT AGENCIES - 4.4%
25,000 Fannie Mae 1,606
82,000 Freddie Mac 4,054
----------
5,660
----------
Total Common Stocks
(cost $111,274) 126,743
----------
PRINCIPAL
AMOUNT
(000S)
- ---------
SHORT-TERM INVESTMENT - 1.9%
$2,464 Berliner Handels und Frankfurter,
5.938%, 10/1/98
(cost $2,464) 2,464
----------
Total Investments - 100.0%
(cost $113,738) 129,207
Liabilities Less Other Assets - (0.0)% (56)
----------
NET ASSETS - 100.0% $ 129,151
==========
See Notes to the Financial Statements.
<PAGE>
- ---------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MID CAP GROWTH FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 95.3%
ADVERTISING - 2.2%
3,600 Interpublic Group of Cos. (The), Inc. $ 194
16,000 Outdoor Systems, Inc.<F1> 312
----------
506
----------
AEROSPACE AND DEFENSE - 1.7%
9,700 Gulfstream Aerospace Corp.<F1> 390
----------
AIRLINES - 2.3%
11,000 COMAIR Holdings, Inc. 316
11,700 Skywest, Inc. 224
----------
540
----------
BIOTECHNOLOGY - 2.0%
6,900 Biogen, Inc.<F1> 454
----------
COMMERCIAL SERVICES - 9.5%
11,550 Apollo Group, Inc., Class A<F1> 322
17,000 DeVry, Inc.<F1> 398
9,925 Paychex, Inc. 512
17,400 Profit Recovery Group International
(The), Inc.<F1> 544
6,000 Robert Half International, Inc.<F1> 259
7,200 United Rentals, Inc.<F1> 172
----------
2,207
----------
COMPUTERS - 8.5%
5,600 Broadcom Corp., Class A<F1> 398
7,900 Ciber, Inc.<F1> 159
8,000 Dell Computer Corp.<F1> 526
7,200 EMC Corp.<F1> 412
9,900 Henry (Jack) & Associates, Inc. 473
----------
1,968
----------
DIVERSIFIED FINANCIAL SERVICES - 1.8%
3,800 Finova Group, Inc. 190
5,500 Healthcare Financial Partners, Inc.<F1> 231
----------
421
----------
ELECTRICAL COMPONENTS & EQUIPMENT - 2.1%
12,900 American Power Conversion Corp.<F1> 486
----------
ELECTRONICS - 1.3%
13,000 Vitesse Semiconductor Corp.<F1> 307
----------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HEALTH CARE - 8.3%
10,400 Arterial Vascular Engineering, Inc.<F1> $ 385
8,000 Becton, Dickinson & Co. 329
10,500 Health Management Associates, Inc.,
Class A<F1> 192
8,000 Minimed, Inc.<F1> 528
9,600 Steris Corp.<F1> 271
11,300 Ventana Medical Systems, Inc.<F1> 203
----------
1,908
----------
HOME BUILDERS - 1.1%
10,200 Pulte Corp. 251
----------
HOUSEHOLD PRODUCTS - 1.1%
5,600 Avery Dennison Corp. 245
----------
INSURANCE - 2.8%
6,500 Hartford Life, Inc., Class A 275
10,800 Mutual Risk Management Ltd. 382
----------
657
----------
MEDIA - 2.4%
8,800 Cox Radio, Inc., Class A<F1> 309
2,900 Time Warner, Inc. 254
----------
563
----------
MISCELLANEOUS MANUFACTURING - 1.2%
4,900 Tyco International Ltd. 271
----------
OIL AND GAS EQUIPMENT - 0.8%
7,500 Diamond Offshore Drilling, Inc. 195
----------
PHARMACEUTICALS - 4.1%
6,400 Elan Corp. PLC ADR<F1> 461
9,700 Watson Pharmaceuticals, Inc.<F1> 492
----------
953
----------
RESTAURANTS - 0.9%
6,000 Starbucks Corp.<F1> 217
----------
RETAIL - 7.0%
11,400 99 Cents Only Stores<F1> 451
10,000 Fred Meyer, Inc.<F1> 389
5,100 Gap, (The) Inc. 269
5,400 Ross Stores, Inc. 154
11,900 Staples, Inc.<F1> 349
----------
1,612
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
MID CAP GROWTH FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SOFTWARE - 26.8%
3,500 America Online, Inc.<F1> $ 389
9,500 BMC Software, Inc.<F1> 571
18,000 Broadvision, Inc.<F1> 190
7,200 Citrix Systems, Inc.<F1> 511
11,200 Concord Communications, Inc.<F1> 445
5,600 Documentum, Inc.<F1> 222
9,000 Electronic Arts, Inc.<F1> 395
9,650 Fiserv, Inc.<F1> 445
9,500 Great Plains Software, Inc.<F1> 449
9,500 IDX Systems Corp.<F1> 504
5,400 Intuit, Inc.<F1> 251
10,700 J.D. Edwards & Co.<F1> 514
9,900 Legato Systems, Inc.<F1> 509
5,100 LHS Group, Inc.<F1> 248
6,000 Mobius Management Systems, Inc.<F1> 36
6,500 Network Associates, Inc.<F1> 231
10,400 Siebel Systems, Inc.<F1> 297
----------
6,207
----------
TELECOMMUNICATION EQUIPMENT - 1.8%
8,600 Superior Telecom, Inc. 416
----------
TELECOMMUNICATIONS - 2.7%
9,500 Gilat Satellite Networks Ltd.<F1> 428
6,100 Qwest Communications International, Inc.<F1> 191
----------
619
----------
TELEPHONE - 1.6%
7,600 MCI WorldCom, Inc.<F1> 371
----------
TEXTILES - 1.3%
9,700 Westpoint Stevens, Inc.<F1> 296
----------
Total Common Stocks
(cost $23,472) 22,060
----------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 7.1%
$939 Berliner Handels und Frankfurter,
5.938%, 10/1/98 $ 939
694 FHLB Discount Note,
5.40%, 10/1/98 694
----------
Total Short-Term Investments
(cost $1,633) 1,633
----------
Total Investments - 102.4%
(cost $25,105) 23,693
Liabilities less Other Assets - (2.4)% (545)
----------
NET ASSETS - 100.0% $ 23,148
==========
See Notes to the Financial Statements.
<PAGE>
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 97.4%
ADVERTISING - 0.5%
18,600 Cyrk, Inc.<F1> $ 195
900 Grey Advertising, Inc. 295
4,400 National Media Corp.<F1> 14
3,100 Quintel Communications, Inc.<F1> 9
5,400 Telespectrum Worldwide, Inc.<F1> 45
35,100 True North Communications 779
----------
1,337
----------
AEROSPACE/DEFENSE - 1.4%
38,550 AAR Corp. 756
12,900 Aeroflex, Inc.<F1> 127
400 Allied Research Corp.<F1> 3
31,800 Banner Aerospace, Inc.<F1> 254
12,200 BE Aerospace, Inc.<F1> 268
12,000 Curtiss-Wright Corp.<F1> 476
17,900 Nichols Research Corp.<F1> 344
43,700 Orbital Sciences Corp.<F1> 1,226
1,700 Primex Technologies, Inc. 58
2,400 SPACEHAB, Inc.<F1> 21
8,200 Tech-Sym Corp.<F1> 188
4,200 Titan Corp.<F1> 21
19,400 United Industrial Corp. 198
----------
3,940
----------
AGRICULTURE - 0.0%
1,700 Andersons (The), Inc. 18
13,700 Orange Co., Inc.<F1> 80
----------
98
----------
AIRLINES - 0.7%
8,300 Airtran Holdings, Inc.<F1> 33
19,800 Alaska Airgroup, Inc.<F1> 674
14,000 Amtran, Inc.<F1> 329
11,600 Hawaiian Airlines, Inc.<F1> 23
38,400 Mesa Air Group, Inc.<F1> 192
27,600 SkyWest, Inc. 528
20,800 Tower Air, Inc.<F1> 44
----------
1,823
----------
APPAREL - 1.6%
188,700 Burlington Industries, Inc.<F1> 1,793
13,000 Chic By H.I.S., Inc.<F1> 42
8,100 Cone Mills Corp.<F1> 40
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
APPAREL - 1.6% (CONT'D.)
12,200 Deckers Outdoor Corp.<F1> $ 61
33,300 Delta Woodside Industries, Inc. 131
9,600 Donna Karan International, Inc.<F1> 70
15,600 Dyersburg Corp. 60
1,400 Florsheim Group, Inc.<F1> 9
6,900 Garan, Inc. 193
11,600 Haggar Corp. 128
800 Hampshire Group Ltd.<F1> 14
11,100 Hartmarx Corp.<F1> 73
29,800 Kellwood Co. 801
8,500 LaCrosse Footwear, Inc. 74
9,200 Oxford Industries, Inc. 283
36,700 Phillips-Van Heusen Corp. 349
600 Pluma, Inc.<F1> 1
5,900 Starter Corp.<F1> 11
1,400 Supreme International Corp.<F1> 16
40,600 Tultex Corp.<F1> 71
3,900 Weyco Group, Inc. 103
19,600 Worldtex, Inc.<F1> 93
----------
4,416
----------
AUTO MANUFACTURERS - 0.1%
17,800 Brilliance China Automotive Holdings Ltd. 123
900 Oshkosh Truck Corp. 22
----------
145
----------
AUTO PARTS & EQUIPMENT - 1.3%
32,400 Arvin Industries, Inc. 1,207
8,300 China Tire Holding, Inc. 40
33,500 Detroit Diesel Corp.<F1> 565
8,500 Durakon Industries, Inc.<F1> 91
7,100 Edelebrock Corp.<F1> 104
14,600 Excel Industries, Inc. 182
10,600 Exide Corp. 122
200 Federal Screw Works 10
3,700 Jason, Inc.<F1> 28
10,700 R & B, Inc.<F1> 73
500 Ragan Brad, Inc.<F1> 19
2,700 Spartan Motors, Inc.<F1> 13
17,800 Standard Motors Products, Inc. 434
22,800 Standard Products Co. 399
11,000 Titan International, Inc. 122
11,800 Walbro Corp.<F1> 95
----------
3,504
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
BANKS - 3.2%
1,700 ABC Bancorp $ 21
4,100 Area Bancshares Corp. 107
1,900 Bancfirst Corp. 69
13,576 Brenton Banks, Inc. 255
9,900 BSB Bancorp, Inc. 275
900 Cass Commerical Corp. 23
5,000 Cathay Bancorp, Inc. 183
4,000 CB Bancshares, Inc. 124
200 Central Co-Operative Bank 4
1,000 Commercial Bank Of New York 16
6,600 Community Bank System, Inc. 188
4,700 Community Trust Bancorp, Inc. 123
14,400 CPB, Inc. 229
8,200 Evergreen Bancorp, Inc. 205
1,300 Fidelity National Corp.<F1> 13
210 First Colonial Group, Inc. 6
1,900 First Merchants Corp. 70
12,900 First Republic Bank<F1> 393
20,048 F.N.B. Corp. 561
815 Franklin Bank N.A. 9
8,800 GBC Bancorp 211
700 German American Bancorp 17
5,300 Grand Premier Financial, Inc. 80
5,276 HUBCO, Inc. 134
4,500 Interchange Financial Services Corp. 69
1,900 ISB Financial Corp. 42
600 James River Bankshares, Inc. 11
11,306 Jeffbanks, Inc. 281
300 Mahaska Investment Co. 6
1,000 Mason-Dixon Bancshares, Inc. 30
640 Matewan Bancshares, Inc. 15
2,700 Merchants Bancshares, Inc. 62
1,470 Michigan Financial Corp. 52
11,602 Mid-America Bancorp 286
12,114 National City Bancorporation<F1> 339
11,525 NBT Bancorp, Inc. 265
6,000 Northern States Financial Corp. 163
500 Old Second Bancorp, Inc. 24
5,985 One Valley Bancorp, Inc. 193
7,893 Peoples Holding Co. 254
9,464 Premier National Bancorp 160
450 Princeton National Bancorp 8
2,000 Republic Bancshares, Inc.<F1> 44
4,100 Republic Security Financial Corp. 36
46,300 Riggs National Corp. 1,134
714 Signal Corp. 22
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
BANKS - 3.2% (CONT'D.)
400 Southside Bancshares Corp. $ 15
600 Southwest Bancorp, Inc. 16
600 Southwest National Corp. 43
7,000 Sterling Bancorp 141
21,800 Sumitomo Bank of California 828
8,550 Triangle Bancorp, Inc. 166
2,875 TriCo Bancshares 69
25,500 USBANCORP, Inc. 484
6,200 Vermont Financial Services Corp. 133
660 Vista Bancorp, Inc.<F1> 13
9,900 Wesbanco, Inc. 275
----------
8,995
----------
BEVERAGES - 0.2%
14,365 Chock Full O' Nuts Corp.<F1> 90
2,000 Farmer Bros. Co. 430
2,900 Genesee Corp., Class B 74
----------
594
----------
BIOTECHNOLOGY - 0.8%
900 Advanced Magnetics, Inc.<F1> 7
3,000 Aksys Ltd.<F1> 19
14,500 ATL Ultrasound, Inc.<F1> 730
2,300 Biocryst Pharmaceuticals, Inc.<F1> 16
60,200 Biomira, Inc.<F1> 92
37,600 Cell Genesys, Inc.<F1> 120
13,000 Creative Biomolecules, Inc.<F1> 39
11,000 Cytogen Corp.<F1> 9
3,900 DNAP Holding Corp.<F1> 14
3,900 Genome Therapeutics Corp.<F1> 8
1,500 Innovasive Devices, Inc.<F1> 8
3,850 Integra Lifesciences Corp.<F1> 18
9,500 Liposome Co. (The), Inc.<F1> 54
3,200 Martek Biosciences Corp.<F1> 26
2,300 Microcide Pharmaceutical, Inc.<F1> 12
4,000 Neopath, Inc.<F1> 20
4,800 Neoprobe Corp.<F1> 4
19,100 Northfield Laboratories, Inc.<F1> 181
10,900 Protein Design Labs, Inc.<F1> 262
10,100 Regeneron Pharmaceuticals, Inc.<F1> 78
17,900 Ribi Immunochem Research, Inc.<F1> 55
43,400 Scios, Inc.<F1> 247
2,200 Synaptic Pharmaceutical Corp.<F1> 32
4,900 U.S. Diagnostic Labs, Inc.<F1> 10
12,400 VIMRx Pharmaceuticals, Inc.<F1> 15
4,800 Viragen, Inc.<F1> 6
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
BIOTECHNOLOGY - 0.8% (CONT'D.)
15,600 Xoma Corp.<F1> $ 43
----------
2,125
----------
BUILDING MATERIALS - 1.7%
3,000 ABT Building Products Corp.<F1> 31
5,400 Ameron International Corp. 190
2,400 Butler Manufacturing Co. 55
31,600 Calmat Co. 547
1,400 Diamond Home Services, Inc.<F1> 6
4,100 Dravo Corp.<F1> 52
13,950 Elcor Corp. 295
21,800 Florida Rock Industries, Inc. 539
12,800 Genlyte Group, Inc.<F1> 262
6,900 Giant Cement Holding, Inc.<F1> 144
5,800 International Aluminum Co. 165
41,100 Jannock Ltd. 377
25,100 Juno Lighting, Inc. 562
12,100 Mestek, Inc.<F1> 225
13,600 Morgan Products Ltd.<F1> 36
10,600 Nortek, Inc.<F1> 289
1,000 Patrick Industries, Inc. 15
6,600 Puerto Rican Cement Co., Inc. 292
15,600 Thomas Industries, Inc. 334
24,000 TJ International, Inc. 450
----------
4,866
----------
CHEMICALS - 1.8%
9,510 Aceto Corp. 125
1,200 American Pacific Corp.<F1> 10
2,200 Applied Extrusion Technologies, Inc.<F1> 21
32,000 Cambrex Corp. 754
5,100 Chemfab Corp.<F1> 99
9,200 Chemfirst, Inc. 162
9,700 CPAC, Inc.<F1> 86
36,800 Ethyl Corp. 147
19,100 H.B. Fuller Co. 723
15,600 Learonal, Inc. 265
11,700 Macdermid, Inc. 354
9,000 Mississippi Chemical Corp. 109
24,500 Mycogen Corp.<F1> 683
4,700 O'Sullivan Corp.<F1> 40
19,700 Quaker Chemical Corp.<F1> 308
15,900 Schulman (A.), Inc. 225
700 Southwall Technologies, Inc.<F1> 4
7,700 Sybron Chemicals, Inc.<F1> 116
8,500 Tetra Technologies, Inc.<F1> 102
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
CHEMICALS - 1.8% (CONT'D.)
18,100 Uniroyal Technology Corp.<F1> $ 167
5,100 US Home & Garden, Inc.<F1> 24
43,600 Wellman, Inc. 556
----------
5,080
----------
COAL - 0.1%
16,100 Arch Coal, Inc. 239
----------
COMMERCIAL SERVICES - 3.3%
800 Alarmguard Holdings, Inc.<F1> 6
14,700 American Oncology Resources, Inc.<F1> 149
5,000 Aurora Biosciences Corp.<F1> 30
40,100 Avis Rent A Car, Inc.<F1> 865
13,100 Berlitz International, Inc.<F1> 346
1,600 Carey International, Inc.<F1> 24
13,600 Chemed Corp. 382
500 Childtime Learning Centers, Inc.<F1> 8
4,600 Christiana Cos.<F1> 89
5,500 Complete Management, Inc.<F1> 6
1,300 Correctional Services Corp.<F1> 13
10,400 Data Broadcasting Corp.<F1> 49
7,100 Envoy Corp.<F1> 155
3,300 Euronet Services, Inc.<F1> 10
49,200 Franklin Covey Co.<F1> 962
4,400 Health Management Systems, Inc. 34
15,016 Healthcare Services Group, Inc.<F1> 141
20,951 Healthplan Services Corp. 225
5,300 Home Choice Holdings, Inc.<F1> 69
300 Hudson General Corp. 15
15,700 Inacom Corp.<F1> 296
14,800 Insurance Auto Auctions, Inc.<F1> 185
5,200 InteliData Technologies Corp.<F1> 5
1,800 IntelliQuest Information Group, Inc.<F1> 13
46,600 Interim Services, Inc.<F1> 958
1,100 M/A/R/C, Inc. 15
98,700 Medaphis Corp.<F1> 444
1,870 Monro Muffler Brake, Inc.<F1> 18
33,100 National Processing, Inc.<F1> 223
1,500 New Horizons Worldwide, Inc.<F1> 25
19,100 Paymentech, Inc.<F1> 282
8,700 Personnel Group of America, Inc.<F1> 107
17,900 Pharmaceutical Marketing Services, Inc.<F1> 161
14,800 Phymatrix Corp.<F1> 55
65,700 Physician Reliance Network<F1> 772
6,600 Physicians Resource Group, Inc.<F1> 12
17,050 Pinkertons, Inc.<F1> 235
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMERCIAL SERVICES - 3.3% (CONT'D.)
39,200 Primark Corp.<F1> $ 1,196
1,400 Right Management Consultants, Inc.<F1> 17
2,500 RTW, Inc.<F1> 13
16,100 Rural/Metro Corp.<F1> 129
2,300 Startek, Inc.<F1> 20
1,100 SteriGenics International, Inc.<F1> 24
6,700 Strategic Distribution, Inc.<F1> 21
3,700 Thermo TerraTech, Inc.<F1> 14
600 Thomas Group, Inc.<F1> 5
11,400 Transcend Services, Inc.<F1> 29
8,400 Transfinancial Holdings, Inc.<F1> 52
9,900 Vallen Corp.<F1> 193
9,700 Volt Information Sciences, Inc.<F1> 193
----------
9,290
----------
COMPUTERS - 2.9%
1,900 ACT Networks, Inc.<F1> 15
800 Analysis & Technology, Inc. 14
28,700 Anixter International, Inc.<F1> 447
18,900 Applied Magnetics Corp.<F1> 80
7,300 Auspex Systems, Inc.<F1> 22
10,812 Axiohm Transaction Solutions, Inc.<F1> 78
9,400 BancTec, Inc.<F1> 134
3,100 Brite Voice Systems, Inc.<F1> 30
1,500 Broadway & Seymour, Inc.<F1> 5
1,800 BTG, Inc.<F1> 12
13,900 CalComp Technology, Inc.<F1> 26
500 Ciprico, Inc.<F1> 4
4,700 Computer Network Technology Corp.<F1> 26
19,800 CustomTracks Corp. 103
42,500 Data General Corp.<F1> 462
47,000 Diamond Multimedia Systems, Inc.<F1> 220
1,900 Digital Link Corp.<F1> 7
1,600 Dynamics Research Corp.<F1> 10
12,300 Evans & Sutherland Computer Corp.<F1> 161
30,400 Exabyte Corp.<F1> 198
14,800 GENICOM Corp.<F1> 32
17,300 Hutchinson Technology, Inc.<F1> 296
65,100 Intergraph Corp.<F1> 423
4,100 InterVoice, Inc.<F1> 94
24,400 Komag, Inc.<F1> 75
88,100 Mentor Graphics Corp.<F1> 611
24,300 Micron Electronics, Inc.<F1> 425
7,900 MicroTouch Systems, Inc.<F1> 99
12,300 MTI Technology Corp.<F1> 85
18,600 MTS Systems Corp. 274
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMPUTERS - 2.9% (CONT'D.)
5,600 Mylex Corp.<F1> $ 36
4,700 National TechTeam, Inc.<F1> 38
23,100 Network Computing Devices, Inc.<F1> 140
16,500 Network Peripherals, Inc.<F1> 50
3,500 ODS Networks, Inc.<F1> 16
2,700 Opti, Inc.<F1> 13
1,000 Overland Data, Inc.<F1> 5
12,000 Par Technology Corp.<F1> 69
2,300 Planar Systems, Inc.<F1> 26
14,000 Powerhouse Technologies, Inc.<F1> 124
2,000 Printronix, Inc.<F1> 28
23,700 Quickturn Design Systems, Inc.<F1> 237
23,900 Read-Rite Corp.<F1> 187
76,100 S3, Inc.<F1> 219
42,400 Sequent Computer Systems, Inc.<F1> 368
4,900 Silicon Storage Technology, Inc.<F1> 10
600 Stratasys, Inc.<F1> 3
24,600 Stratus Computer, Inc.<F1> 829
20,900 Telxon Corp. 426
1,300 Texas Micro, Inc.<F1> 4
2,700 Trident Microsystems, Inc. 8
12,800 Tyler Corp.<F1> 98
3,500 Verilink Corp.<F1> 16
26,400 Wang Laboratories, Inc.<F1> 512
11,800 Xircom, Inc.<F1> 289
----------
8,219
----------
CONSUMER PRODUCTS - 0.0%
17,220 Standard Commercial Corp. 128
COSMETICS/PERSONAL CARE - 0.1%
17,600 Helen of Troy Ltd.<F1> 341
800 Stephan Co. (The) 8
----------
349
----------
DISTRIBUTION/WHOLESALE - 0.5%
1,300 Advanced Marketing Services, Inc. 23
25,700 Aviall, Inc.<F1> 268
11,500 Bell Microproducts, Inc.<F1> 86
1,500 Industrial Distribution Group, Inc.<F1> 9
240 Keystone Automotive Industries, Inc.<F1> 5
21,000 MicroAge, Inc.<F1> 231
1,500 NuCo2, Inc.<F1> 10
32,600 Owens & Minor, Inc. Holding Co. 379
8,800 PrimeSource Corp. 73
7,200 Rentrak Corp.<F1> 24
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
DISTRIBUTION/WHOLESALE - 0.5% (CONT'D.)
1,500 Richey Electronics, Inc.<F1> $ 10
2,400 SED International Holdings, Inc.<F1> 12
15,440 United Stationers, Inc.<F1> 369
----------
1,499
----------
DIVERSIFIED FINANANCIAL SERVICES - 1.7%
14,300 Aames Financial Corp. 87
6,700 Advest Group, Inc. 137
15,000 Amplicon, Inc. 214
12,600 Arcadia Financial Ltd.<F1> 69
2,000 Atalanta/Sosnoff Capital Corp.<F1> 16
1,100 Central Financial Acceptance Corp.<F1> 8
3,500 Consumer Portfolio Services, Inc.<F1> 13
22,100 Credit Acceptance Corp.<F1> 137
9,350 Dain Rauscher Corp. 295
3,900 Delta Financial Corp.<F1> 27
18,800 Doral Financial Corp. 301
14,300 DVI, Inc.<F1> 210
1,700 Echelon International Corp.<F1> 36
945 First Albany Companies, Inc. 12
2,000 FirstCity Financial Corp.<F1> 32
8,645 Fund American Enterprises Holdings, Inc. 1,080
1,400 Hoenig Group, Inc.<F1> 10
7,400 Interstate/Johnson Lane, Inc. 215
12,400 McDonald & Co. Investments, Inc. 384
28,700 Mercury Finance Co.<F1> 2
17,480 Metris Companies, Inc.<F1> 815
1,900 National Discount Brokers Group, Inc.<F1> 17
3,600 New Century Financial Corp.<F1> 27
20,600 Phoenix Investment Partners, Ltd. 139
10,800 Resource Bancshares Mortgage Group, Inc. 192
300 Somerset Group, Inc. 5
6,352 Southwest Securities Group, Inc. 118
1,220 Stifel Financial Corp. 13
14,100 United Cos. Financial Corp. 113
7,700 WFS Financial, Inc. 46
200 Ziegler Cos. (The), Inc. 4
----------
4,774
----------
DIVERSIFIED INVESTMENT COMPANIES - 0.3%
14,300 Kaiser Ventures, Inc.<F1> 154
2,000 Noel Group<F1> 3
25,100 PEC Israel Economic Corp.<F1> 643
----------
800
----------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
ELECTRIC - 4.0%
7,500 Bangor Hydro-Electric Co.<F1> $ 73
11,200 Baycorp Holdings Ltd.<F1> 59
7,500 Calpine Corp.<F1> 152
28,700 Central Hudson Gas & Electric 1,202
15,500 Central Vermont Public Service Corp. 168
17,700 Cilcorp, Inc. 928
47,200 CMP Group, Inc. 876
28,900 Eastern Utilities Associates 755
8,200 Empire District Electric Co. 187
6,900 Green Mountain Power Corp. 79
18,500 Orange & Rockland Utilities, Inc. 1,015
65,800 Public Service Co. of New Mexico 1,460
21,600 Sierra Pacific Resources 838
2,200 St. Joseph Light & Power Co. 41
17,900 TNP Enterprises, Inc. 625
3,800 Trigen Energy Corp. 49
21,000 United Illuminating Co. 1,097
6,000 Unitil Corp. 137
3,000 Upper Peninsula Energy Corp. 91
36,100 WPS Resources Corp. 1,291
----------
11,123
----------
ELECTRICAL COMPONENT & EQUIPMENT - 0.4%
800 Align-Rite International, Inc.<F1> 8
1,600 Del Global Technologies Corp.<F1> 12
1,400 Electric Fuel Corp.<F1> 4
15,300 Encore Wire Corp.<F1> 142
1,700 Franklin Electric Publishers, Inc.<F1> 15
30,600 FSI International, Inc.<F1> 161
4,000 GaSonics International Corp.<F1> 17
11,300 Insteel Industries, Inc. 54
4,800 Integrated Process Equipment Corp.<F1> 36
3,329 Intermagnetics General Corp.<F1> 23
19,400 Kulicke & Soffa Industries, Inc.<F1> 264
2,900 Lamson & Sessions Co.<F1> 13
14,300 Scotsman Industries, Inc. 324
900 Sl Industries, Inc. 9
16,100 Valence Technology, Inc.<F1> 68
----------
1,150
----------
ELECTRONICS - 2.3%
3,300 Ade Corp.<F1> 32
4,800 Affinity Technology Group, Inc.<F1> 2
4,700 Altron, Inc.<F1> 59
10,700 Anadigics, Inc.<F1> 71
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
ELECTRONICS - 2.3% (CONT'D.)
5,300 Analogic Corp. $ 183
5,700 Applied Science & Technology, Inc.<F1> 23
3,350 Bel Fuse, Inc., Class A<F1> 52
3,350 Bel Fuse, Inc., Class B<F1> 49
12,387 Bell Industries, Inc.<F1> 148
8,200 Benchmark Electronics, Inc.<F1> 187
1,500 California Micro Devices Corp.<F1> 4
28,400 Canadian Marconi Co. 341
600 Central Sprinkler Corp.<F1> 7
17,600 Checkpoint Systems, Inc.<F1> 153
4,100 Cidco, Inc.<F1> 8
16,100 Coherent, Inc.<F1> 150
1,700 C.P. Clare Corp.<F1> 10
28,896 CTS Corp. 852
12,150 Cubic Corp. 254
2,800 Datum, Inc.<F1> 20
24,400 DII Group, Inc. 296
5,700 Dynatech Corp.<F1> 17
39,600 Elsag Bailey Process Automation N.V.<F1> 834
6,700 FLIR Systems, Inc.<F1> 89
9,600 IFR Systems, Inc. 41
4,500 Industrial Scientific Corp. 108
900 Information Storage Devices<F1> 6
9,200 Instron Corp. 130
24,600 Integrated Device Technology, Inc.<F1> 131
2,000 ITI Technologies, Inc.<F1> 48
4,400 Itron, Inc.<F1> 29
10,200 LEC Electronics Corp.<F1> 51
10,800 LTX Corp.<F1> 22
2,700 Mackie Designs, Inc.<F1> 18
1,300 Merix Corp.<F1> 5
500 Moore Products Co.<F1> 10
12,200 Newport Corp. 171
14,300 Optical Coating Laboratory, Inc. 257
21,500 Park Electrochemical Corp. 293
14,700 Pittway Corp., Class A 351
2,700 Recoton Corp.<F1> 53
8,300 Reptron Electronics, Inc.<F1> 43
2,800 Rofin-Sinar Technologies, Inc.<F1> 26
1,900 Sheldahl, Inc.<F1> 13
900 Smartflex Systems, Inc.<F1> 5
1,700 Sparton Corp.<F1> 10
1,500 Spectrum Control, Inc.<F1> 6
21,000 Standard Microsystems Corp.<F1> 150
3,200 Thermospectra Corp.<F1> 32
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
ELECTRONICS - 2.3% (CONT'D.)
10,100 TSI, Inc. $ 74
8,500 Universal Electronics, Inc. 98
2,200 Veeco Instruments, Inc.<F1> 69
12,800 Woodward Governor Co. 294
----------
6,385
----------
ENGINEERING & CONSTRUCTION - 1.4%
2,700 American Residential Services<F1> 11
1,100 Baker (Michael) Corp.<F1> 10
8,300 BFC Construction Corp.<F1> 62
1,750 Corrpro Companies, Inc.<F1> 18
24,500 Dames & Moore Group 257
9,900 Exponent, Inc.<F1> 50
37,200 Granite Construction, Inc. 1,095
3,300 ICF Kaiser International, Inc.<F1> 5
15,100 Jacobs Engineering Group, Inc.<F1> 468
73,300 Morrison Knudsen Corp.<F1> 788
9,000 Pitt-Des Moines, Inc. 198
17,400 Stone & Webster, Inc. 552
10,800 Turner Corp.<F1> 163
14,383 URS Corp.<F1> 258
----------
3,935
----------
ENTERTAINMENT - 1.2%
4,100 AMC Entertainment, Inc.<F1> 53
4,500 Ameristar Casinos, Inc.<F1> 14
5,200 Argosy Gaming Co.<F1> 12
40,400 Ascent Entertainment Group, Inc.<F1> 323
61,300 Aztar Corp.<F1> 238
500 Baldwin Piano & Organ Co.<F1> 6
59,900 Boyd Gaming Corp.<F1> 217
5,500 Carmike Cinemas, Inc., Class A<F1> 101
5,000 Casino America, Inc. 13
10,500 GC Companies, Inc.<F1> 406
66,500 Grand Casinos, Inc.<F1> 528
13,300 Harveys Casino Resorts 318
24,637 Hollywood Park, Inc.<F1> 256
12,300 Jackpot Enterprises, Inc.<F1> 122
13,400 Mikohn Gaming Corp.<F1> 52
8,800 Players International, Inc.<F1> 42
3,248 President Casinos, Inc.<F1> 3
1,100 Reading Entertainment, Inc.<F1> 9
26,000 Rio Hotel And Casino, Inc.<F1> 359
500 Riviera Holdings Corp.<F1> 3
500 Riviera Holdings Corp.-Rights<F1> 0
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
ENTERTAINMENT - 1.2% (CONT'D.)
1,700 Shuffle Master, Inc.<F1> $ 14
6,600 Sodak Gaming, Inc.<F1> 41
8,900 Station Casinos, Inc.<F1> 47
7,000 Trump Hotels & Casino Resorts, Inc.<F1> 26
----------
3,203
----------
ENVIRONMENTAL CONTROL - 0.8%
53,900 Calgon Carbon Corp. 401
3,300 Darling International, Inc.<F1> 12
11,326 Fluor Daniel/GTI, Inc.<F1> 62
21,500 Gundle/Slt Environmental, Inc.<F1> 69
7,400 Hach Co. 83
7,400 Hach Co., Class A 68
46,672 International Technology Corp.<F1> 315
9,900 Layne Christensen Co.<F1> 98
7,000 Mine Safety Appliances Co. 564
5,245 NSC Corp. 6
155,100 Safety-Kleen Corp.<F1> 514
10,720 Sevenson Environmental Services, Inc. 82
2,700 ThermoRetec Corp. 7
----------
2,281
----------
FOOD - 3.0%
11,700 Buttrey Food & Drug Stores Co.<F1> 181
30,118 Chiquita Brands International, Inc. 318
120,400 Earthgrains Co. 3,725
63,700 Fleming Companies, Inc. 780
29,844 Imperial Holly Corp. 201
21,400 International Multifoods Corp. 352
12,000 J & J Snack Foods Corp.<F1> 222
20,600 Michael Foods, Inc. 489
13,200 Midwest Grain Products, Inc.<F1> 139
15,300 Nash Finch Co. 225
1,700 Opta Food Ingredients, Inc.<F1> 7
25,300 Pilgrims Pride Corp., Class B 527
11,000 Riviana Foods, Inc. 219
19,450 Sanderson Farms, Inc. 260
9,300 Sanfilippo (John B.) & Son, Inc.<F1> 46
4,800 Schultz Save-O Stores, Inc. 74
1,250 Seaboard Corp. 338
22,114 WLR Foods, Inc.<F1> 171
13,640 Zapata Corp. 132
----------
8,406
----------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
FOREST PRODUCTS & PAPER - 0.5%
32,000 Chesapeake Corp.<F1> $ 1,110
16,200 Paragon Trade Brands, Inc.<F1> 53
19,900 Pope & Talbot, Inc. 194
----------
1,357
----------
GAS - 0.9%
1,000 Chesapeake Utilities Corp. 18
9,200 Connecticut Energy Corp. 248
2,900 CTG Resources, Inc. 70
2,300 EnergyNorth, Inc. 63
15,400 NUI Corp. 354
7,400 Pennsylvania Enterprises, Inc. 185
9,500 Piedmont Natural Gas Co. 322
7,900 Providence Energy Corp. 154
17,845 Southern Union Co.<F1> 357
36,800 Southwest Gas Corp. 752
8,700 Southwestern Energy Co. 74
----------
2,597
----------
HAND/MACHINE TOOLS - 0.3%
700 Axsys Technologies, Inc.<F1> 8
13,200 Hardinge, Inc. 291
6,800 Powell Industries, Inc.<F1> 53
8,300 SPX Corp.<F1> 343
534 Starret (L.S.) Co., Class B 20
600 Valley Forge Corp. 7
----------
722
----------
HEALTH CARE - 4.2%
28,100 Acuson Corp.<F1> 479
1,800 Advanced Neuromodulation Systems, Inc.<F1> 12
800 Allied Healthcare Products, Inc.<F1> 1
10,900 American Healthcorp, Inc.<F1> 88
20,150 American Homepatient, Inc.<F1> 38
31,600 American Shared Hospital Services 30
22,700 Apria Healthcare Group, Inc.<F1> 99
3,100 ATS Medical, Inc.<F1> 18
1,800 BioReliance Corp.<F1> 19
3,300 Biosite Diagnostics, Inc.<F1> 17
800 BioSource International, Inc.<F1> 3
2,000 Cardiac Pathways Corp.<F1> 10
2,600 Cardiogenesis Corp.<F1> 6
2,900 CardioThoracic Systems, Inc.<F1> 11
900 Cardiovascular Dynamics, Inc.<F1> 3
16,500 Circon Corp.<F1> 161
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HEALTH CARE - 4.2% (CONT'D.)
4,700 Clintrials Research, Inc.<F1> $ 22
4,000 CNS, Inc.<F1> 15
2,500 Cohesion Technologies, Inc.<F1> 8
600 Cohr, Inc.<F1> 2
2,500 Collagen Aesthetics, Inc. 21
7,000 CONMED Corp.<F1> 160
6,100 Cyberonics, Inc. 37
22,000 Datascope Corp.<F1> 487
800 Daxor Corp.<F1> 9
6,600 Diagnostic Products Corp. 176
600 Dianon Systems, Inc.<F1> 4
1,300 Eclipse Surgical Technologies, Inc.<F1> 12
1,200 Educational Medical, Inc. 8
1,900 Endocardial Solutions, Inc.<F1> 12
4,800 Endosonics Corp.<F1> 23
2,200 Epitope, Inc.<F1> 8
10,500 Fonar Corp. 14
2,300 General Surgical Innovations, Inc.<F1> 5
20,600 Genesis Health Ventures, Inc.<F1> 252
25,630 Graham-Field Health Products, Inc.<F1> 66
36,000 Haemonetics Corp.<F1> 693
3,800 Hologic, Inc.<F1> 49
1,500 Home Health Corp. of America, Inc.<F1> 2
2,000 ICU Medical, Inc.<F1> 28
51,600 Idexx Laboratories, Inc.<F1> 1,232
9,700 Igen International, Inc.<F1> 274
25,341 Integrated Health Services, Inc. 426
40,100 Invacare Corp. 942
600 Iridex Corp.<F1> 3
53,300 Isolyser Co., Inc.<F1> 62
1,000 Karrington Health, Inc.<F1> 7
2,100 Keravision, Inc.<F1> 9
7,700 Lab Holdings, Inc. 117
9,000 Labone, Inc. 108
39,200 Laboratory Corp. of America Holdings<F1> 64
1,200 Laserscope<F1> 1
14,550 Life Technologies, Inc. 486
2,500 Lunar Corp.<F1> 28
39,800 Mariner Post-Acute Network, Inc.<F1> 204
7,800 Marquette Medical Systems, Inc.<F1> 339
49,600 Matria Healthcare, Inc.<F1> 105
11,600 Maxxim Medical, Inc.<F1> 298
1,900 Medical Resources, Inc.<F1> 5
1,400 Minntech Corp. 13
17,416 Molecular Biosystems, Inc.<F1> 74
5,200 Neuromedical Systems, Inc.<F1> 2
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HEALTH CARE - 4.2% (CONT'D.)
1,600 Nitinol Medical Technologies<F1> $ 7
700 Norland Medical Systems, Inc.<F1> 0
73,800 Novacare, Inc.<F1> 226
1,500 Novametrix Medical Systems<F1> 8
17,300 OEC Medical Systems, Inc.<F1> 374
7,100 Orthologic Corp.<F1> 28
1,400 Pediatric Services of America<F1> 5
11,500 Polymedica Corp.<F1> 106
9,400 Prime Medical Services, Inc.<F1> 76
8,900 Protocol Systems, Inc.<F1> 75
40,000 Quest Diagnostics, Inc.<F1> 660
5,100 Quidel Corp.<F1> 13
1,800 Raytel Medical Corp.<F1> 8
7,200 Rehabcare Group, Inc.<F1> 86
4,200 Resound Corp.<F1> 18
36,750 Sierra Health Services<F1> 724
18,500 Sola International, Inc.<F1> 332
4,833 Sonosight, Inc.<F1> 33
13,000 Spacelabs Medical, Inc.<F1> 202
1,300 Spectrx, Inc.<F1> 6
15,200 Staff Builders, Inc., Class A<F1> 10
9,000 Summit Technology, Inc.<F1> 33
57,500 Sun Healthcare Group, Inc.<F1> 374
8,100 Thermotrex Corp.<F1> 103
3,300 Transworld Healthcare, Inc.<F1> 14
10,000 Trex Medical Corp.<F1> 128
2,200 Urocor, Inc.<F1> 10
1,400 Utah Medical Products, Inc.<F1> 9
3,900 Vista Medical Technologies, Inc.<F1> 10
5,000 Vital Signs, Inc. 83
1,400 Xomed Surgical Products, Inc.<F1> 58
----------
11,726
----------
HOLDING COMPANIES - DIVERSIFIED - 0.0%
600 Craig Corp.<F1> 5
----------
HOME BUILDERS - 3.1%
10,000 Amrep Corp.<F1> 77
8,500 Beazer Homes USA, Inc.<F1> 175
3,700 Cavalier Homes, Inc. 34
20,925 D.R. Horton, Inc. 335
16,200 Engle Homes, Inc. 230
39,700 Kaufman & Broad Home Corp. 930
31,700 Lennar Corp. 707
29,900 MDC Holdings, Inc. 551
11,200 M/I Schottenstein Homes, Inc. 207
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HOME BUILDERS - 3.1% (CONT'D.)
15,100 NVR, Inc.<F1> $ 498
57,400 Pulte Corp. 1,410
26,000 Ryland Group, Inc. 634
29,600 Schuler Homes, Inc.<F1> 222
13,100 Skyline Corp. 380
3,200 Southern Energy Homes, Inc.<F1> 22
40,000 Standard Pacific Corp. 565
14,700 Thor Industries, Inc. 312
24,100 U. S. Home Corp. 708
37,300 Webb (Del E.) Corp. 786
----------
8,783
----------
HOME FURNISHINGS - 1.9%
24,500 Bassett Furniture Industries 717
25,200 Ethan Allen Interiors, Inc. 914
11,100 Fedders Corp. 57
9,400 Flexsteel Industries, Inc. 102
32,500 Furniture Brands International, Inc.<F1> 634
11,300 Harman International Industries, Inc. 415
4,850 Knape & Vogt Manufacturing Co. 98
3,300 Ladd Furniture, Inc.<F1> 54
73,200 La-Z-Boy, Inc. 1,437
22,600 O'Sullivan Industries Holdings, Inc. 219
3,800 Pulaski Furniture Corp. 85
2,000 Rival Co. (The) 16
15,600 Royal Appliance Manufacturing Co.<F1> 60
69,200 Singer Co. N.V. (The)<F1> 316
17,800 Windmere-Durable Holdings, Inc.<F1> 100
----------
5,224
----------
HOUSEHOLD PRODUCTS/WARES - 1.0%
22,300 American Business Products, Inc. 466
14,700 CSS Industries, Inc.<F1> 414
5,000 Ennis Business Forms, Inc. 50
22,300 Gibson Greetings, Inc.<F1> 453
11,200 Hunt Corp. 170
8,900 Nashua Corp.<F1> 131
7,400 Oil-Dri Corp. 95
13,200 Russ Berrie & Co., Inc. 252
25,300 Standard Register Co. 688
11,100 Swiss Army Brands, Inc.<F1> 111
----------
2,830
----------
HOUSEWARES - 0.2%
1,100 Acorn Products, Inc.<F1> 7
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
HOUSEWARES - 0.2% (CONT'D.)
25,800 Ekco Group, Inc.<F1> $ 90
2,700 Lifetime Hoan Corp. 25
17,000 Metromedia International Group, Inc.<F1> 66
5,900 Mikasa, Inc. 66
10,000 National Presto Industries, Inc. 375
----------
629
----------
INSURANCE - 7.2%
20,800 Acceptance Insurance Cos., Inc.<F1> 433
9,600 Allcity Insurance Co.<F1> 68
25,425 Allied Group, Inc. 1,222
600 Allied Life Financial Corp. 18
6,000 American Heritage Life Investment Corp. 137
31,600 American Medical Security Group, Inc. 316
29,100 Amerus Life Holdings, Inc., Class A 638
82,600 Argonaut Group, Inc. 2,106
3,600 Atlantic American Corp.<F1> 16
3,800 Baldwin & Lyons, Inc., Class B 84
16,200 Berkley (W.R.) Corp. 484
32,400 Capital RE Corp. 887
3,500 Capitol Transamerica Corp. 67
3,100 Centris Group, Inc. 31
3,000 Chartwell RE Corp. 84
37,300 Citizens Corp. 1,005
28,100 CNA Surety Corp.<F1> 407
2,900 Compdent Corp.<F1> 40
3,300 Danielson Holding Corp.<F1> 14
10,888 Donegal Group, Inc. 166
15,200 EMC Insurance Group, Inc. 190
43,200 Enhance Financial Services Group, Inc. 1,277
22,500 Fairfax Financial Holdings Ltd.<F1> 8
1,500 Farm Family Holdings, Inc.<F1> 46
51,000 FBL Financial Group, Inc., Class A 1,176
1,100 Financial Industries Corp.<F1> 15
5,800 Gainsco, Inc. 42
9,100 Gryphon Holdings, Inc.<F1> 127
2,700 Guarantee Life Companies, Inc. 49
38,800 Harleysville Group, Inc. 800
3,400 Highlands Insurance Group, Inc.<F1> 41
4,950 Independence Holding Co. 62
10,400 Intercargo Corp. 112
600 Intercontinental Life Corp.<F1> 12
8,400 Kansas City Life Insurance Co. 686
13,600 LandAmerica Financial Group, Inc. 697
2,300 Meadowbrook Insurance Group, Inc. 57
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
INSURANCE - 7.2% (CONT'D.)
3,800 Merchants Group, Inc. $ 73
8,800 Meridian Insurance Group, Inc. 164
12,600 Midland Co. 286
10,800 NAC RE Corp. 532
2,300 Navigators Group (The), Inc.<F1> 33
13,100 Nymagic, Inc. 332
700 Old Guard Group, Inc.<F1> 11
9,500 Pico Holdings, Inc.<F1> 36
6,700 Penn Treaty American Corp.<F1> 162
46,700 Presidential Life Corp. 701
4,720 Professionals Group, Inc.<F1> 123
20,900 PXRE Corp. 537
7,500 Risk Capital Holdings, Inc.<F1> 165
16,000 RLI Corp. 608
4,000 SCPIE Holdings, Inc. 124
51,600 Selective Insurance Group, Inc. 987
8,550 Stewart Information Services Corp. 493
1,300 Superior National Insurance Group, Inc.<F1> 21
5,800 Trenwick Group, Inc. 169
600 Unico American Corp. 7
9,850 United Fire & Casualty Co. 368
24,000 Zenith National Insurance Corp. 602
----------
20,154
----------
IRON/STEEL - 1.9%
15,800 Acme Metals, Inc.<F1> 0
13,500 AK Steel Holding Corp. 222
40,300 Birmingham Steel Corp. 320
5,400 Citation Corp.<F1> 51
15,600 Cleveland-Cliffs, Inc. 608
16,700 Gibraltar Steel Corp.<F1> 291
12,300 Inland Steel Industries, Inc. 268
52,500 J & L Specialty Steel, Inc. 272
15,400 Lone Star Technologies, Inc.<F1> 196
4,500 Material Sciences Corp.<F1> 39
6,100 National Steel Corp., Class B 43
14,500 Olympic Steel, Inc.<F1> 97
34,900 Oregon Steel Mills, Inc. 410
20,550 Reliance Steel & Aluminum Co. 674
15,225 Roanoke Electric Steel Corp. 198
15,700 Shiloh Industries, Inc.<F1> 285
8,100 Steel of West Virginia, Inc.<F1> 50
16,300 Steel Technologies, Inc. 118
28,400 Texas Industries, Inc. 713
58,100 Weirton Steel Corp.<F1> 145
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
IRON/STEEL - 1.9% (CONT'D.)
29,803 WHX Corp.<F1> $ 384
5,384
LEISURE TIME - 0.3%
20,800 Aldila, Inc.<F1> 75
13,800 American Classic Voyages Co.<F1> 204
9,900 Arctic Cat, Inc. 88
10,400 Coastcast Corp.<F1> 88
1,900 Cybex International, Inc. 12
800 Global Motorsport Group, Inc.<F1> 12
1,700 GT Bicycles, Inc.<F1> 14
17,300 Huffy Corp. 244
----------
737
----------
LODGING - 0.5%
18,400 Homestead Village, Inc.<F1> 157
31,250 Marcus Corp. 484
54,900 Prime Hospitality Corp.<F1> 384
12,800 Red Roof Inns, Inc.<F1> 215
9,700 Sholodge, Inc.<F1> 39
5,200 Suburban Lodges of America, Inc.<F1> 35
5,800 Sunburst Hospitality Corp.<F1> 26
500 Supertel Hospitality, Inc.<F1> 4
----------
1,344
----------
MACHINERY - CONSTRUCTION & MINING - 0.4%
12,600 Astec Industries, Inc.<F1> 537
30,700 Global Industrial Technologies, Inc.<F1> 215
8,600 Kuhlman Corp. 279
----------
1,031
----------
MACHINERY - DIVERSIFIED - 1.2%
8,600 Applied Industrial Technology, Inc. 140
4,200 Binks Sames Corp. 71
1,300 Bridgeport Machines, Inc.<F1> 11
3,700 Cascade Corp. 49
3,200 CTB International Corp.<F1> 22
6,000 DT Industries, Inc. 102
9,300 Gardner Denver, Inc.<F1> 131
7,400 Gehl Co.<F1> 101
37,700 Gerber Scientific, Inc. 1,018
23,100 Imation Corp.<F1> 427
21,700 Magnetek, Inc.<F1> 237
45,000 Stewart & Stevenson Services, Inc. 529
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
MACHINERY - DIVERSIFIED - 1.2% (CONT'D.)
11,800 Thermo Power Corp.<F1> $ 106
2,600 Thermo Sentron, Inc.<F1> 22
1,100 Trident International, Inc. 10
3,800 Twin Disc, Inc. 93
13,700 Unova, Inc.<F1> 225
----------
3,294
----------
MEDIA - 1.4%
4,500 American Banknote Corp.<F1> 6
40,400 Banta Corp. 1,101
56,200 Bowne & Co., Inc. 952
2,400 Cadmus Communications Corp. 47
20,000 CMP Media, Inc., Class A<F1> 215
600 Courier Corp. 12
15,200 Lodgenet Entertainment Corp.<F1> 107
2,000 Newsedge Corp.<F1> 17
800 Norwood Promotional Products, Inc.<F1> 15
12,400 On Command Corp.<F1> 105
7,350 Penton Media, Inc. 100
23,000 Spelling Entertainment Group, Inc.<F1> 162
5,600 Thomas Nelson, Inc. 71
28,750 World Color Press, Inc.<F1> 891
----------
3,801
----------
METAL FABRICATE/HARDWARE - 1.2%
11,800 Amcast Industries Corp. 173
13,000 Ampco-Pittsburgh Corp. 190
11,100 Atchison Casting Corp.<F1> 110
19,900 Commercial Metals Co. 458
11,500 Fansteel, Inc.<F1> 70
13,200 Johnstown America Industries, Inc.<F1> 188
14,200 Maverick Tube Corp.<F1> 98
47,600 Mueller Industries, Inc.<F1> 1,211
19,000 Quanex Corp. 376
33,700 Rohn Industries, Inc. 65
6,000 Shaw Group, Inc.<F1> 52
1,400 Sun Hydraulics Corp. 13
600 Transpro, Inc. 3
6,800 Transtechnology Corp. 140
3,500 Wolverine Tube, Inc.<F1> 74
----------
3,221
----------
METALS-DIVERSIFIED - 0.6%
16,800 ASARCO, Inc. 321
22,200 Brush Wellman, Inc. 308
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
METALS-DIVERSIFIED - 0.6% (CONT'D.)
5,800 Century Aluminum Co. $ 62
29,700 Coeur D'Alene Mines Corp.<F1> 217
4,900 Commonwealth Industries, Inc. 40
2,700 Easco, Inc. 24
2,200 Gold Reserve Corp.<F1> 4
74,800 Hecla Mining Co.<F1> 379
25,901 Nord Resources Corp.<F1> 27
4,200 Southern Peru Copper Corp. 46
5,200 Stillwater Mining Co.<F1> 164
----------
1,592
----------
MINING - 1.0%
83,600 Cambior, Inc. 496
178,600 Campbell Resources, Inc.<F1> 73
215,500 Echo Bay Mines Ltd.<F1> 512
294,002 Kinross Gold Corp.<F1> 900
99,900 Meridian Gold, Inc.<F1> 450
6,200 Oglebay Norton Co. 164
105,700 Vista Gold Corp.<F1> 20
11,420 Zemex Corp.<F1> 74
----------
2,689
----------
MISCELLANEOUS MANUFACTURING - 1.8%
2,500 ABC Rail Products Corp.<F1> 40
38,200 ACX Technologies, Inc.<F1> 492
1,000 American Biltrite, Inc. 24
24,200 Aura Systems, Inc.<F1> 32
12,200 Bairnco Corp. 68
31,400 Dexter Corp. 769
11,968 Essef Corp.<F1> 209
15,600 Furon Co. 271
41,200 Griffon Corp.<F1> 361
35,700 Justin Industries, Inc. 549
11,200 Katy Industries, Inc. 184
17,500 LSB Industries, Inc. 59
900 Lynch Corp.<F1> 69
6,300 M & F Worldwide Corp.<F1> 63
9,700 NCH Corp. 595
4,200 Osmonics, Inc.<F1> 44
3,200 Park-Ohio Holdings Corp.<F1> 44
13,000 Polymer Group, Inc.<F1> 102
10,800 Quixote Corp. 135
800 Safety Components International, Inc.<F1> 11
5,287 Samsonite Corp.<F1> 31
7,400 SPS Technologies, Inc.<F1> 345
28,650 Tredegar Industries, Inc. 525
----------
5,022
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
OFFICE FURNISHINGS - 0.1%
2,000 Falcon Products, Inc. $ 22
800 TAB Products Co. 6
9,900 Virco Manufacturing Corp. 223
8,700 Winsloew Furniture, Inc.<F1> 165
----------
416
----------
OFFICE/BUSINESS EQUIPMENT - 0.1%
10,200 General Binding Corp. 335
1,500 TRM Corp.<F1> 18
----------
353
----------
OIL & GAS PRODUCERS - 2.4%
8,600 Atwood Oceanics, Inc.<F1> 179
12,800 Basin Exploration, Inc.<F1> 212
1,178 Bayard Drilling Technologies, Inc.<F1> 5
9,700 Benton Oil & Gas Co.<F1> 55
7,600 Callon Petroleum Corp.<F1> 97
48,399 Chesapeake Energy Corp. 57
18,500 Chieftain International, Inc.<F1> 316
1,900 Clayton Williams Energy, Inc.<F1> 19
12,400 Cliff's Drilling Co.<F1> 245
12,200 Coho Energy, Inc.<F1> 59
3,300 Crown Central Petroleum Corp., Class B<F1> 32
3,000 Crystal Oil Co.<F1> 117
15,000 Giant Industries, Inc. 181
31,700 Houston Exploration Co. (The)<F1> 618
6,900 Howell Corp. 44
23,000 HS Resources, Inc.<F1> 263
22,767 Louis Dreyfus Natural Gas Corp.<F1> 330
10,300 Meridian Resource Corp.<F1> 44
8,600 National Energy Group, Inc.<F1> 3
130,600 Numac Energy, Inc.<F1> 327
3,500 Patina Oil & Gas Corp. 18
11,200 Penn Virginia Corp. 246
11,500 Petrocorp, Inc.<F1> 68
47,700 Quaker State Corp. 695
102,000 Ranger Oil Ltd.<F1> 669
76,300 Rigel Energy Corp.<F1> 542
31,500 Snyder Oil Corp. 502
6,104 Swift Energy Co.<F1> 59
36,400 Tesoro Petroleum Corp.<F1> 475
13,000 Titan Exploration, Inc.<F1> 79
13,600 Unit Corp.<F1> 66
12,100 Wiser Oil Co. 64
----------
6,686
----------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
OIL & GAS SERVICES - 0.6%
23,200 Daniel Industries, Inc. $ 318
1,100 Dawson Geophysical Co.<F1> 13
900 Finishmaster, Inc.<F1> 5
8,900 Lufkin Industries, Inc. 231
1,400 Matrix Service Co.<F1> 7
22,800 Pool Energy Services Co.<F1> 208
35,000 RPC, Inc. 311
12,000 Tuboscope, Inc. 140
33,000 Stolt Comex Seaway S.A.<F1> 318
16,500 Stolt Comex Seaway S.A. ADR<F1> 142
----------
1,693
----------
PACKAGING & CONTAINERS - 0.1%
1,700 AEP Industries, Inc.<F1> 36
7,500 JPS Packaging Co.<F1> 30
22,800 Longview Fibre Co. 306
----------
372
----------
PHARMACEUTICALS - 2.2%
9,300 Alliance Pharmaceutical Corp.<F1> 28
11,000 Alpharma, Inc., Class A 289
4,700 Axys Pharmaceuticals, Inc.<F1> 21
21,333 Bindley Western Industries, Inc. 704
10,315 Block Drug Co., Class A 371
2,700 Cadus Pharmaceutical Corp.<F1> 8
64,300 Carter-Wallace, Inc. 1,009
8,600 Cephalon, Inc.<F1> 63
3,500 Chirex, Inc.<F1> 42
25,900 Copley Pharmaceutical, Inc.<F1> 259
20,400 COR Therapeutics, Inc.<F1> 158
2,400 Corixa Corp.<F1> 15
1,300 Corvas International, Inc.<F1> 3
1,000 Cubist Pharmaceuticals, Inc.<F1> 2
1,700 Cytotherapeutics, Inc. 2
5,075 Cytrx Corp. 5
2,900 Duramed Pharmaceuticals, Inc.<F1> 11
39,500 Gensia Sicor, Inc.<F1> 160
6,866 Herbalife International, Inc., Class A 64
2,700 Ilex Oncology, Inc.<F1> 23
10,900 Immucor, Inc.<F1> 106
19,900 Immune Response Corp.<F1> 229
30,700 Ivax Corp.<F1> 269
223 Lynx Therapeutics, Inc. 2
4,600 Matrix Pharmaceutical, Inc.<F1> 13
4,400 Medarex, Inc.<F1> 17
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
PHARMACEUTICALS - 2.2% (CONT'D.)
2,000 MIM Corp.<F1> $ 6
7,400 NABI, Inc.<F1> 16
34,800 NBTY, Inc.<F1> 274
33,000 Neurocrine Biosciences, Inc.<F1> 194
4,500 Neurogen Corp.<F1> 74
14,900 Nexstar Pharmaceuticals, Inc.<F1> 153
2,000 NPS Pharmaceuticals, Inc.<F1> 14
2,200 Onyx Pharmaceuticals, Inc.<F1> 16
25,300 OSI Pharmaceuticals, Inc.<F1> 74
23,900 Pharmaceutical Resources, Inc.<F1> 102
8,900 Pharmerica, Inc.<F1> 48
38,000 Roberts Pharmaceutical Corp.<F1> 727
22,600 Sciclone Pharmaceuticals, Inc.<F1> 41
16,100 Shaman Pharmaceuticals, Inc.<F1> 22
1,400 Sibia Neurosciences, Inc.<F1> 5
13,000 Syncor International Corp.<F1> 215
9,600 Veterinary Centers of America, Inc.<F1> 175
----------
6,029
PIPELINES - 0.1%
44,500 Western Gas Resources, Inc. 367
----------
REAL ESTATE - 0.7%
12,300 Avatar Holdings, Inc.<F1> 226
4,300 Bluegreen Corp.<F1> 32
14,500 Castle & Cooke, Inc.<F1> 218
17,500 Getty Realty Corp. 245
5,533 Lasalle Partners, Inc.<F1> 181
32,200 LNR Property Corp. 622
13,900 Trammell Crow Co.<F1> 354
----------
1,878
----------
REAL ESTATE INVESTMENT TRUSTS - 0.1%
4,500 Price Enterprises, Inc.<F1> 23
5,700 Sovran Self Storage, Inc. 150
22,000 Winston Hotels, Inc. 191
----------
364
----------
RETAIL - 7.6%
37,300 AnnTaylor Stores, Inc.<F1> 758
16,500 Baker (J.), Inc. 74
12,300 Blair Corp. 367
56,400 Bob Evans Farms, Inc. 1,124
13,000 Bombay Co. (The), Inc.<F1> 69
11,300 Bon-Ton Stores (The), Inc.<F1> 85
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
RETAIL - 7.6% (CONT'D.)
3,900 Books-A-Million, Inc.<F1> $ 10
52,700 Boston Chicken, Inc.<F1> 40
10,600 Brookstone, Inc.<F1> 125
24,500 Brown Group, Inc. 377
54,200 BT Office Products International<F1> 745
11,500 Buffets, Inc.<F1> 124
16,100 Building Material Holding Corp.<F1> 211
64,320 Burlington Coat Factory Warehouse Corp. 949
12,600 Cameron Ashley Building Products, Inc. 141
33,000 Cash America International, Inc. 367
7,950 CEC Entertainment, Inc.<F1> 161
164,000 Charming Shoppes, Inc.<F1> 687
15,900 Chart House Enterprises, Inc.<F1> 87
82,500 Checkers Drive-In Restaurants, Inc.<F1> 49
3,900 Copart, Inc.<F1> 87
2,200 Creative Computers, Inc.<F1> 18
2,800 DEB Shops, Inc. 21
7,300 Discount Auto Parts, Inc.<F1> 176
22,400 Dress Barn, Inc.<F1> 272
17,800 Drug Emporium, Inc.<F1> 71
1,000 Duckwall-ALCO Stores, Inc.<F1> 13
44,400 Eagle Hardware & Garden, Inc.<F1> 963
23,400 Egghead.Com, Inc.<F1> 170
11,300 Einstein/Noah Bagel Corp.<F1> 14
24,500 Filene's Basement Corp.<F1> 43
54,900 Fingerhut Companies, Inc. 604
8,141 Frisch's Restaurants, Inc. 69
2,300 Getty Petroleum Marketing, Inc.<F1> 9
18,700 Good Guys, Inc.<F1> 110
14,200 Gottschalks, Inc.<F1> 104
45,300 Handleman Co.<F1> 385
11,800 Haverty Furniture, Inc. 224
88,600 Heilig-Meyers Co. 637
16,700 Hollywood Entertainment Corp.<F1> 228
51,000 Homebase, Inc.<F1> 341
25,300 Hughes Supply, Inc. 721
16,300 Intertan, Inc.<F1> 65
6,900 Jacobson Stores, Inc.<F1> 57
34,600 Jan Bell Marketing, Inc.<F1> 225
3,900 Jo-Ann Stores, Inc., Class A<F1> 87
7,600 Just For Feet, Inc.<F1> 97
6,400 Koo Koo Roo, Inc.<F1> 6
1,800 Lazare Kaplan International, Inc.<F1> 14
21,500 Lechters, Inc.<F1> 74
13,000 Lillian Vernon Corp. 176
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
RETAIL - 7.6% (CONT'D.)
1,400 Little Switzerland, Inc.<F1> $ 5
27,400 Lone Star Steakhouse & Saloon, Inc.<F1> 209
28,100 Michaels Stores, Inc.<F1> 717
46,700 Micro Warehouse, Inc.<F1> 704
11,437 Movado Group, Inc. 240
24,900 Musicland Stores Corp.<F1> 308
4,900 Noland Co. 109
13,500 Piccadilly Cafeterias, Inc. 148
8,100 PS Group Holdings, Inc.<F1> 94
2,800 Quality Dining, Inc.<F1> 9
3,600 Rare Hospitality International, Inc.<F1> 39
1,900 REX Stores Corp.<F1> 20
900 Rush Enterprises, Inc.<F1> 9
66,100 Ryan's Family Steak Houses, Inc.<F1> 789
1,100 S & K Famous Brands, Inc.<F1> 13
34,300 Service Merchandise Co.<F1> 51
17,700 Shoe Carnival, Inc.<F1> 164
43,900 Shopko Stores, Inc.<F1> 1,427
29,700 Sizzler International, Inc.<F1> 54
11,000 Sport Supply Group, Inc.<F1> 83
44,400 Sports Authority (The), Inc.<F1> 339
24,000 Syms Corp.<F1> 249
20,100 Taco Cabana, Inc., Class A<F1> 122
14,000 Talbots, Inc. 250
17,100 Tandycrafts, Inc.<F1> 66
25,500 TCBY Enterprises, Inc. 156
2,000 Tractor Supply Co.<F1> 40
8,000 Trak Auto Corp.<F1> 55
5,500 Ugly Duckling Corp.<F1> 29
9,500 United Auto Group, Inc.<F1> 135
2,600 Uno Restaurant Corp.<F1> 17
43,100 Value City Department Stores, Inc.<F1> 380
12,400 Vicorp Restaurants, Inc.<F1> 168
9,400 Wolohan Lumber Co. 107
47,600 Zale Corp.<F1> 1,220
----------
21,156
----------
SAVINGS & LOANS - 6.2%
17,380 Albank Financial Corp. 969
15,114 Alliance Bancorp 278
900 Ambanc Holding Co., Inc. 12
600 Ameriana Bancorp 11
5,000 American Bank of Connecticut 89
13,000 Anchor Bancorp Wisconsin, Inc. 288
8,675 Andover Bancorp, Inc. 272
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SAVINGS & LOANS - 6.2% (CONT'D.)
29,455 Astoria Financial Corp. $ 1,241
500 Avondale Financial Corp.<F1> 6
6,000 Bank Plus Corp.<F1> 27
17,700 Bay View Capital Corp. 323
4,100 Calumet Bancorp, Inc.<F1> 123
1,200 Camco Financial Corp. 19
300 Cameron Financial Corp.<F1> 5
10,050 Coastal Bancorp, Inc. 160
7,500 Commonwealth Bancorp, Inc. 115
1,000 Community Federal Bancorp, Inc. 15
6,975 Covest Bancshares, Inc. 99
5,700 Dime Community Bancshares, Inc. 118
43,074 Downey Financial Corp. 1,026
1,500 Eagle Bancshares, Inc. 27
400 Enterprise Federal Bancorp, Inc. 15
7,260 ESB Financial Corp. 123
700 FCB Financial Corp. 18
4,766 FFLC Bancorp, Inc. 83
5,600 FFY Financial Corp. 151
400 Fidelity Bancorp, Inc. 8
8,000 Fidelity Bankshares, Inc. 188
1,300 First Bell Bancorp, Inc. 20
300 First Bergen Bancorp, Inc. 6
1,000 First Coastal Bankshares, Inc. 14
2,300 First Defiance Financial Corp. 28
10,200 First Essex Bancorp, Inc. 170
1,000 First Federal Bancshares of Arkansas, Inc. 20
11,100 First Federal Capital Corp. 161
5,700 First Federal Financial of Kentucky, Inc. 133
3,500 First Federal Savings & Loan Association
of East Hartford 89
17,160 First Indiana Corp. 360
7,200 First Liberty Financial Corp. 138
300 First Midwest Financial, Inc. 5
12,000 First Northern Capital Corp. 126
6,800 First Palm Beach Bancorp, Inc. 238
4,900 First Savings Bancorp, Inc. 110
29,788 First Source Bancorp, Inc. 263
3,610 First Washington Bancorp, Inc. 82
28,800 Firstfed Financial Corp.<F1> 491
2,000 Flushing Financial Corp. 44
500 FSF Financial Corp. 8
11,800 Haven Bancorp, Inc. 184
500 Hawthorne Financial Corp.<F1> 8
1,300 HF Bancorp, Inc.<F1> 21
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SAVINGS & LOANS - 6.2% (CONT'D.)
600 HF Financial Corp. $ 9
5,200 HFNC Financial Corp. 55
8,550 HMN Financial, Inc. 124
300 Home Bancorp 8
5,625 Home Federal Bancorp 129
10,090 Horizon Financial Corp. 136
1,000 Industrial Bancorp, Inc. 18
10,350 Interwest Bancorp, Inc. 237
400 Iroquois Bancorp, Inc. 8
2,200 ITLA Capital Corp.<F1> 30
300 Jacksonville Bancorp, Inc. 5
13,600 Jefferson Svgs Bancorp, Inc. 223
13,400 JSB Financial, Inc. 688
200 Kankakee Bancorp, Inc. 5
2,800 Klamath First Bancorp, Inc. 49
18,400 Long Island Bancorp, Inc. 886
11,324 MAF Bancorp, Inc. 266
8,700 Maryland Federal Bancorp, Inc. 313
4,866 Massbank Corp. 185
12,200 Medford Bancorp, Inc. 197
625 Monterey Bay Bancorp, Inc. 8
400 Mutual Savings Bank, F.S.B.<F1> 3
700 North Central Bancshares, Inc. 12
500 NSS Bancorp, Inc. 23
5,100 Ocean Financial Corp. 77
7,513 Ottawa Financial Corp. 169
300 Pacific Crest Capital, Inc.<F1> 4
300 Pamrapo Bancorp, Inc. 8
1,200 Parkvale Financial Corp. 36
3,000 Pennfed Financial Services, Inc. 40
500 Peoples Bancorp, Inc. 10
400 Permanent Bancorp, Inc. 5
6,700 PFF Bancorp, Inc.<F1> 102
300 Pulse Bancorp, Inc. 8
7,968 Quaker City Bancorp, Inc. 122
25,988 Queens County Bancorp, Inc. 695
200 Raritan Bancorp, Inc. 7
11,800 Reliance Bancorp, Inc. 333
7,200 St. Francis Capital Corp. 259
39,951 St. Paul Bancorp, Inc. 871
7,500 Sterling Financial Corp.<F1> 129
800 Teche Holding Co. 12
5,500 TF Financial Corp. 97
13,000 TR Financial Corp. 346
42,716 Webster Financial Corp. 1,041
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SAVINGS & LOANS - 6.2% (CONT'D.)
200 Westco Bancorp, Inc. $ 6
35,600 Westcorp 307
7,600 Westerfed Financial Corp. 158
2,800 Western Ohio Financial Corp. 56
600 WVS Financial Corp. 9
500 Yonkers Financial Corp. 8
11,971 York Financial Corp. 209
----------
17,269
----------
SEMICONDUCTORS - 1.5%
11,600 Alliance Semiconductor Corp.<F1> 30
37,400 Cirrus Logic, Inc.<F1> 224
50,900 Cypress Semiconductor Corp. 445
28,100 Dallas Semiconductor Corp. 759
500 Diodes, Inc.<F1> 3
900 Elantec Semiconductor, Inc.<F1> 3
6,300 Electroglas, Inc.<F1> 55
12,300 ESS Technology, Inc.<F1> 42
12,600 Exar Corp.<F1> 191
1,600 Genus, Inc.<F1> 1
4,900 Integrated Silicon Solutions, Inc.<F1> 20
25,800 International Rectifier Corp.<F1> 132
10,200 Kopin Corp.<F1> 152
25,500 Marshall Industries, Inc.<F1> 563
3,000 Mattson Technology, Inc.<F1> 10
20,300 MEMC Electronic Materials, Inc.<F1> 61
1,900 Micro Linear Corp.<F1> 7
12,800 Oak Technology, Inc.<F1> 26
35,400 Pioneer Standard Electronics, Inc. 223
9,400 Richardson Electrictronics Ltd. 66
3,400 SDL, Inc.<F1> 43
32,000 Silicon Valley Group, Inc.<F1> 256
3,800 Siliconix, Inc.<F1> 53
2,600 Triquint Semiconductor, Inc.<F1> 40
28,000 Ultratech Stepper, Inc.<F1> 425
11,100 Watkins-Johnson Co. 207
1,800 Xicor, Inc.<F1> 2
----------
4,039
----------
SHIPBUILDING - 0.2%
19,700 Avondale Industries, Inc.<F1> 488
----------
SOFTWARE - 1.2%
400 Active Voice Corp.<F1> 3
1,800 Adept Technology, Inc.<F1> 10
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SOFTWARE - 1.2% (CONT'D.)
1,000 Applix, Inc.<F1> $ 4
1,400 Ardent Software, Inc.<F1> 18
6,600 AVT Corp.<F1> 149
700 Award Software International, Inc.<F1> 6
20,700 Banyan Systems, Inc.<F1> 61
18,800 BRC Holdings, Inc.<F1> 320
18,000 Caere Corp.<F1> 191
3,800 Casino Data Systems, Inc.<F1> 7
2,200 Comshare, Inc.<F1> 8
3,400 DIGI International, Inc.<F1> 42
7,600 Elcom International, Inc.<F1> 10
3,000 HCIA, Inc.<F1> 17
2,800 Imnet Systems, Inc.<F1> 67
7,500 Industrial International, Inc.<F1> 37
38,500 Information Resources, Inc.<F1> 505
38,600 Informix Corp.<F1> 193
44,000 Inprise Corp.<F1> 272
4,200 Inso Corp.<F1> 80
9,700 Macromedia, Inc.<F1> 158
600 MapInfo Corp.<F1> 6
3,200 Microware Systems Corp.<F1> 11
16,511 Netmanage, Inc.<F1> 20
1,700 Netopia, Inc.<F1> 10
2,900 Novadigm, Inc.<F1> 12
1,200 Orcad, Inc.<F1> 9
5,100 Phoenix Technologies Ltd.<F1> 29
11,300 Physician Computer Network, Inc.<F1> 4
3,300 Prism Solutions, Inc.<F1> 5
4,500 Progress Software Corp.<F1> 116
7,500 QAD, Inc.<F1> 29
15,600 Rainbow Technologies, Inc.<F1> 213
2,700 Red Brick Systems, Inc.<F1> 6
49,500 Santa Cruz Operation, Inc.<F1> 217
1,300 Securityfirst Technologies Corp.<F1> 19
1,100 Seer Technologies, Inc.<F1> 1
1,600 Segue Software, Inc.<F1> 26
9,800 Shiva Corp.<F1> 39
5,900 Software Spectrum, Inc.<F1> 89
2,200 Spyglass, Inc.<F1> 28
2,700 SS&C Technologies, Inc.<F1> 33
7,700 Stac, Inc.<F1> 23
1,900 Sync Research, Inc.<F1> 3
6,200 TCSI Corp.<F1> 18
15,000 Verity, Inc.<F1> 103
9,900 Walker Interactive Systems, Inc.<F1> 86
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
SOFTWARE - 1.2% (CONT'D.)
12,600 Wall Data, Inc.<F1> $ 192
----------
3,505
----------
TELECOMMUNICATION EQUIPMENT - 1.4%
9,100 Allen Telecom, Inc.<F1> 61
52,600 Antec Corp.<F1> 809
2,700 Applied Digital Access, Inc.<F1> 8
6,900 Aydin Corp.<F1> 58
2,300 Broadband Technologies, Inc.<F1> 6
9,600 Centigram Communications Corp.<F1> 76
1,100 CMC Industries, Inc.<F1> 5
66,600 Commscope, Inc.<F1> 770
4,000 Corsair Communications, Inc.<F1> 12
2,400 EIS International, Inc.<F1> 5
11,625 Electromagnetic Sciences, Inc.<F1> 160
67,400 Executone Information Systems, Inc.<F1> 76
9,300 Galileo Corp.<F1> 34
7,400 General Datacomm Industries, Inc.<F1> 22
16,700 Geotek Communications, Inc.<F1> 1
82,800 Glenayre Technologies, Inc.<F1> 600
12,200 Interdigital Communications Corp.<F1> 51
2,100 Microdyne Corp.<F1> 6
18,300 Mosaix, Inc.<F1> 88
28,700 Network Equipment Technologies, Inc.<F1> 287
3,300 Ortel Corp.<F1> 53
3,500 Periphonics Corp.<F1> 29
3,000 Proxim, Inc.<F1> 39
4,100 Spectralink Corp.<F1> 11
1,200 Spectran Corp.<F1> 6
8,000 Stanford Telecommunications, Inc.<F1> 74
1,300 Summa Four, Inc.<F1> 21
3,800 Symmetricom, Inc.<F1> 20
1,300 Tadiran Ltd., ADR 36
12,800 Telco Systems, Inc.<F1> 131
1,400 Teltrend, Inc.<F1> 19
5,400 Telular Corp.<F1> 5
20,200 Vertel Corp.<F1> 49
6,900 Vertex Communications Corp.<F1> 127
30,882 VTEL Corp.<F1> 127
----------
3,882
----------
TELECOMMUNICATIONS - 0.6%
9,300 Aerial Communications, Inc.<F1> 34
34,100 American Mobile Satellite Corp.<F1> 179
4,500 Arch Communications Group, Inc.<F1> 8
See Notes to the Financial Statements.
<PAGE>
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
TELECOMMUNICATIONS - 0.6% (CONT'D.)
22,200 California Microwave, Inc.<F1> $ 183
17,700 Cellular Communications of Puerto Rico<F1> 206
7,000 Commonwealth Telephone Enterprises, Inc.<F1> 168
17,700 Corecomm Ltd. 192
5,600 Davel Communications Group, Inc.<F1> 69
6,700 Intek Global Corp.<F1> 13
39,525 Metrocall, Inc.<F1> 188
36,500 Powertel, Inc.<F1> 495
----------
1,735
----------
TELEPHONE - 0.3%
6,680 Atlantic Tele-Network, Inc.<F1> 55
13,400 Intermediate Communications, Inc.<F1> 329
12,877 Roseville Communications Co. 353
----------
737
----------
TEXTILES - 0.5%
12,400 Angelica Corp. 199
1,100 Conso Products Co.<F1> 7
10,800 Crown Crafts, Inc. 86
11,400 Dixie Group, Inc. 74
7,700 Fab Industries, Inc. 177
26,600 Guilford Mills, Inc. 396
3,362 Pillowtex Corp. 99
10,800 Superior Uniform Group, Inc. 134
13,300 Unifirst Corp. 358
----------
1,530
----------
TOYS/GAMES/HOBBIES - 0.0%
5,400 Galoob Toys, Inc.<F1> 61
9,900 Topps Co. (The), Inc.<F1> 28
----------
89
----------
TRANSPORTATION - 3.6%
9,300 Allied Holdings, Inc.<F1> 126
15,700 American Freightways Corp.<F1> 118
26,500 Arkansas Best Corp.<F1> 152
11,400 Arnold Industries, Inc. 164
9,100 Celadon Group, Inc.<F1> 89
19,600 Circle International Group, Inc. 274
11,300 Consolidated Freightways Corp.<F1> 93
600 Dynamex, Inc.<F1> 5
32,000 Florida East Coast Industries, Inc. 928
48,100 Fritz Companies, Inc.<F1> 328
22,800 Frozen Food Express Industries, Inc. 154
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
TRANSPORTATION - 3.6% (CONT'D.)
4,700 FRP Properties, Inc.<F1> $ 102
80,500 Greyhound Lines, Inc.<F1> 332
5,400 Gulfmark Offshore, Inc.<F1> 93
49,500 Hunt (JB) Transportation Services, Inc. 718
500 Kenan Transport Co. 15
33,000 Kirby Corp.<F1> 693
5,900 KLLM Transport Services, Inc.<F1> 48
5,400 Landstar System, Inc.<F1> 152
5,830 Marine Transport Corp.<F1> 13
17,200 Maritrans, Inc. 120
6,000 Marten Transport Ltd.<F1> 86
11,800 Matlack Systems, Inc.<F1> 82
16,300 M.S. Carriers, Inc.<F1> 324
28,800 Offshore Logistics, Inc.<F1> 364
11,300 Old Dominion Freight Lines, Inc.<F1> 158
58,300 OMI Corp.<F1> 237
53,250 Overseas Shipholding Group, Inc. 945
1,400 Railamerica, Inc.<F1> 8
12,400 Railtex, Inc.<F1> 146
27,900 Roadway Express, Inc. 307
3,400 Stolt-Nielsen S.A. 40
38,800 Teekay Shipping Corp. 706
1,400 Transport Corp. of America, Inc. 17
30,600 US Freightways Corp. 608
56,687 Werner Enterprises, Inc. 893
38,900 Yellow Corp.<F1> 525
----------
10,163
----------
TRUCKING & LEASING - 2.1%
58,300 AMERCO<F1> 1,487
19,200 Greenbrier Companies, Inc. 272
37,350 Interpool, Inc. 441
16,700 Motivepower Industries, Inc.<F1> 390
83,700 Rollins Truck Leasing Corp. 936
18,075 Varlen Corp. 502
38,700 Xtra Corp. 1,802
----------
5,830
----------
WATER - 0.9%
12,200 American States Water Co. 323
6,600 Aquarion Co. 222
8,400 California Water Service Group 190
12,000 Consumers Water Co. 342
10,700 E'Town Corp. 449
4,300 SJW Corp. 248
40,668 United Water Resources, Inc. 691
----------
2,465
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
SMALL CAP FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
Total Common Stocks
(cost $269,337) $ 271,892
----------
WARRANTS - 0.0%
50 Coram Healthcare Corp., Exp. 7/11/99<F1> 0
51 Jan Bell Marketing, Inc., Exp. 12/16/98<F1> 0
255 Millicom American Satellite, Exp. 6/30/99<F1> 0
1,010 Olicom A/S, Exp. 6/11/00<F1> 2
27 Royce Laboratories, Inc., Exp. 1998<F1> 0
18 Sound Advice, Inc., Exp. 6/14/99<F1> 0
50 Xytronyx, Inc., Class B, Exp. 8/11/01 <F1> 0
9 York Research Corp., Class B, Exp. 11/30/98<F1> 0
6 York Research Corp., Class C, Exp. 9/30/98<F1> 0
----------
Total Warrants
(cost $0) 2
----------
OTHER INVESTMENTS - 0.0%
10,000 Escrow American Medical Electronics, Inc.<F1> 0
220 Escrow Millicom, Inc.<F1> 0
300 Escrow Northeast Bancorp, Inc.<F1> 0
225 Escrow Statesman Group, Inc.<F1> 0
4,500 Escrow Strawbridge & Clothier, Inc.<F1> 0
1,200 Escrow Takecare, Inc.<F1> 0
5,300 Escrow White River, Inc.<F1> 0
----------
Total Other Investments
(cost $0) 0
----------
PRINCIPAL
AMOUNT
(000S)
- ---------
SHORT-TERM INVESTMENTS - 2.4%
$ 6,449 Berliner Handels und Frankfurter,
5.938%, 10/1/98 6,449
400 U.S. Treasury Bill, 4.50%, 1/7/99<F2> 395
----------
Total Short-Term Investments
(cost $6,844) 6,844
----------
Total Investments - 99.8%
(cost $276,181) 278,738
Other Asset less Liabilities - 0.2% 467
----------
NET ASSETS - 100.0% $ 279,205
==========
OPEN FUTURES CONTRACTS:
Contract Unrealized
Number of Amount Contract Contract Loss
Type Contracts (000s) Position Exp. (000s)
- --------------------------------------------------------------------------------
Russell 2000 8 $1,461 Long 12/98 $ 4
S&P/Barra Value 12 1,425 Long 12/98 26
S&P 500 14 3,591 Long 12/98 68
----
$ 98
====
<F2> Security pledged as collateral to cover margin requirements for open
futures contracts.
See Notes to the Financial Statements.
<PAGE>
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERNATIONAL GROWTH EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 92.4%
FRANCE - 14.7%
34,000 Axa-UAP $ 3,112
21,000 Castorama Dubois Investisse 3,593
20,000 Cie Financiere de Paribas 1,078
38,000 Elf Aquitaine S.A. 4,685
15,000 Groupe Danone S.A. 3,942
15,000 Societe Generale 1,659
25,000 Suez Lyonnaise des Eaux 4,255
43,000 Valeo S.A. 3,069
----------
25,393
----------
GERMANY - 12.3%
6,500 Allianz A.G. 2,015
95,000 Hoechst A.G. 3,922
23,000 Mannesmann A.G. 2,106
9,680 Muenchener Rueckversicherungs -
Gesellschaft A.G. 4,268
320 Muenchener Rueckversicherungs -
Gesellschaft A.G., New Shares<F1> 140
1,200 SAP A.G. 569
54,000 Siemens A.G. 2,982
35,000 VEBA A.G. 1,822
48,000 Volkswagen A.G. 3,461
----------
21,285
----------
IRELAND - 2.0%
48,000 Elan Corp. PLC ADR<F1> 3,459
----------
ITALY - 6.4%
110,000 Assicurazioni Generali 3,575
575,000 Credito Italiano S.p.A. 2,394
425,000 Telecom Italia Mobile S.p.A. 2,474
375,000 Telecom Italia S.p.A. 2,581
----------
11,024
----------
JAPAN - 11.4%
10,000 Fuji Photo Film Co. 345
12,000 Hirose Electric Co. Ltd. 618
300,000 Kirin Brewery Co. Ltd. 2,407
200,000 Nikon Corp. 1,421
225 Nippon Telegraph & Telephone Corp. 1,644
155,000 Pioneer Electronic Corp. 2,567
225,000 Shiseido Co. Ltd. 1,992
275,000 Sumitomo Electric Industries 2,671
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
JAPAN - 11.4% (CONT'D.)
500,000 Toshiba Corp. $ 1,804
95,000 Toyota Motor Corp. 2,129
135,000 Uny Co. Ltd. 2,122
----------
19,720
----------
NETHERLANDS - 7.3%
12,000 Cap Gemini N.V. 808
25,000 Equant N.V. ADR<F1> 1,150
15,000 Getronics N.V. 680
50,000 ING Groep N.V. 2,252
59,000 Unilever N.V. ADR 3,614
90,000 Vedior N.V. 2,220
10,500 Wolters Kluwer N.V. 2,015
----------
12,739
----------
SINGAPORE - 0.8%
350,000 Development Bank of Singapore Ltd. 1,413
----------
SOUTH KOREA - 1.5%
50,000 Samsung Display Devices Co. 1,168
40,000 Samsung Electronics 1,357
----------
2,525
----------
SPAIN - 3.5%
90,000 Corporacion Bancaria de Espana S.A. 1,790
160,000 Iberdrola S.A. 2,664
17,970 Telefonica de Espana ADR 1,616
----------
6,070
----------
SWEDEN - 1.7%
170,000 Astra AB, A Shares 2,908
----------
SWITZERLAND - 8.1%
6,000 Credit Suisse Group 663
1,500 Nestle S.A. 2,984
3,800 Novartis A.G. 6,091
225 Roche Holding A.G. 2,422
3,900 Zurich Allied A.G. 1,936
----------
14,096
----------
UNITED KINGDOM - 22.7%
235,000 Bass PLC 2,815
350,000 British Sky Broadcasting Group PLC 2,980
100,000 Capita Group PLC 1,030
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERNATIONAL GROWTH EQUITY FUND (continued)
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
UNITED KINGDOM - 22.7% (CONT'D.)
425,000 Diageo PLC $ 4,045
50,000 Glaxo Wellcome PLC ADR 2,856
625,000 Ladbroke Group PLC 2,326
365,000 Marks & Spencer PLC 2,804
215,000 Orange PLC<F1> 2,064
165,000 Pearson PLC 3,070
290,000 PowerGen PLC 4,312
85,000 SEMA Group PLC 842
950,000 Shell Transport & Trading Co. 5,752
41,000 SmithKline Beecham PLC ADR 2,245
19,000 Vodafone Group PLC ADR 2,142
39,283
----------
Total Common Stocks
(cost $158,777) 159,915
----------
PRINCIPAL
AMOUNT
(000S)
- ---------
SHORT-TERM INVESTMENTS - 5.4%
$7,054 Berliner Handels und Frankfurter,
5.938%, 10/1/98 7,054
2,228 FHLB Discount Note,
5.40%, 10/1/98 2,228
----------
Total Short-Term Investments
(cost $9,282) 9,282
----------
NUMBER
OF SHARES
- ---------
WARRANTS - 0.0%
320 Muenchener Rueckversicherungs -
Gesellschaft A.G.<F1>
(cost $10) 13
----------
Total Investments - 97.8%
(cost $168,069) 169,210
Other Assets less Liabilities - 2.2% 3,894
----------
NET ASSETS - 100.0% $ 173,104
==========
At September 30, 1998, the International Growth Equity Fund's
investments were diversified as follows:
Industry
Sector
- --------------------------------
Basic Industries/Energy 9.7%
Capital Goods 8.8
Chemicals 2.3
Consumer Goods 44.7
Financial Services 15.2
Technology 7.8
Other 11.5
------
Total 100.0%
======
See Notes to the Financial Statements.
<PAGE>
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERNATIONAL SELECT EQUITY FUND
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 90.4%
FRANCE - 16.6%
55,000 Assurances Generales de France $ 3,032
22,000 Axa-UAP 2,014
20,000 Castorama Dubois Investisse 3,422
8,000 Groupe Danone S.A. 2,102
12,000 Societe Generale 1,327
30,000 Total S.A., B Shares 3,779
30,000 Valeo S.A. 2,141
----------
17,817
----------
GERMANY - 10.3%
14,000 ERGO Versicherungs Gruppe A.G. 2,254
40,000 Hoechst A.G. 1,651
22,000 Mannesmann A.G. 2,014
6,000 Muenchener Rueckversicherungs -
Gesellschaft A.G. 2,646
34,000 Volkswagen A.G. 2,451
----------
11,016
----------
GREECE - 2.2%
100,000 Hellenic Telecommunication
Organization S.A. 2,396
----------
IRELAND - 3.4%
50,000 Elan Corp. PLC ADR<F1> 3,603
----------
ITALY - 6.9%
95,000 Assicurazioni Generali 3,087
100,000 Banca Popolare di Bergamo Credito
Varesino S.p.A. 2,024
400,000 Telecom Italia Mobile S.p.A. 2,329
----------
7,440
----------
JAPAN - 11.5%
300,000 Nikon Corp. 2,131
225 Nippon Telegraph & Telephone Corp. 1,645
150,000 Pioneer Electronic Corp. 2,485
250,000 Sumitomo Electric Industries 2,428
75,000 Toyota Motor Corp. 1,680
125,000 Uny Co. Ltd. 1,965
----------
12,334
----------
NUMBER VALUE
OF SHARES (000S)
- ---------------------------------------------------------------------------
NETHERLANDS - 9.5%
35,000 Cap Gemini N.V. $ 2,356
50,000 Equant N.V. ADR<F1> 2,300
70,000 Royal Dutch Petroleum Co. ADR 3,334
90,000 Vedior N.V. 2,220
----------
10,210
----------
SINGAPORE - 1.1%
300,000 Development Bank of Singapore Ltd. 1,211
----------
SOUTH KOREA - 1.2%
45,000 Samsung Electronics 1,230
----------
SPAIN - 1.0%
55,000 Corporacion Bancaria de Espana S.A. 1,094
----------
SWEDEN - 2.5%
160,000 Astra AB, A Shares 2,737
----------
SWITZERLAND - 3.4%
2,300 Novartis A.G. 3,687
----------
UNITED KINGDOM - 20.8%
170,000 Bass PLC 2,037
250,000 Capita Group PLC 2,575
55,000 Glaxo Wellcome PLC ADR 3,142
350,000 Marks & Spencer PLC 2,688
225,000 Orange PLC<F1> 2,160
175,000 Pearson PLC 3,256
250,000 SEMA Group PLC 2,477
245,000 Unilever N.V. ADR 2,096
17,000 Vodafone Group PLC ADR 1,917
----------
22,348
----------
Total Common Stocks
(cost $92,752) 97,123
----------
PREFERRED STOCKS - 3.5%
GERMANY - 3.5%
12,000 Fresenius A.G. 2,068
3,500 SAP A.G. 1,661
----------
Total Preferred Stocks
(cost $2,203) 3,729
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
INTERNATIONAL SELECT EQUITY FUND (continued)
NUMBER
OF SHARES VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 7.1%
$4,387 Berliner Handels und Frankfurter,
5.938%, 10/1/98 $ 4,387
3,216 FHLB Discount Note,
5.40%, 10/1/98 3,216
----------
Total Short-Term Investments
(cost $7,603) 7,603
----------
Total Investments - 101.0%
(cost $102,558) 108,455
Liabilities less Other Assets - (1.0)% (1,077)
----------
NET ASSETS - 100.0% $ 107,378
==========
- ---------------------------------------------------------------------------
At September 30, 1998, the International Select Equity Fund's
investments were diversified as follows:
Industry
Sector
- --------------------------------
Basic Industries/Energy 6.6%
Capital Goods 7.3
Chemicals 1.5
Consumer Goods 42.8
Financial Services 17.4
Technology 13.7
Other 10.7
------
Total 100.0%
======
See Notes to the Financial Statements.
<PAGE>
- --------------------
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
TECHNOLOGY FUND
NUMBER
OF SHARES VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
COMMON STOCKS - 96.8%
COMMUNICATIONS EQUIPMENT - 18.4%
104,000 3Com Corp.<F1> $ 3,127
116,000 Ascend Communications, Inc.<F1> 5,278
88,443 Cisco Systems, Inc.<F1> 5,467
9,000 Com21, Inc.<F1> 161
76,000 Lucent Technologies, Inc. 5,249
56,000 Northern Telecom Ltd. 1,792
16,000 Qwest Communications International, Inc.<F1> 501
46,500 REMEC, Inc.<F1> 370
64,500 Tellabs, Inc.<F1> 2,568
10,000 Uniphase Corp.<F1> 410
----------
24,923
----------
COMPUTER PERIPHERALS - 7.4%
115,000 EMC Corp.<F1> 6,577
141,100 Seagate Technology, Inc.<F1> 3,536
----------
10,113
----------
COMPUTER SOFTWARE AND SERVICES - 34.4%
60,750 America Online, Inc.<F1> 6,758
5,000 At Home Corp., Series A<F1> 239
6,050 Broadcast.com, Inc.<F1> 244
14,000 Citrix Systems, Inc.<F1> 994
30,000 Computer Associates International, Inc. 1,110
55,000 Computer Sciences Corp.<F1> 2,998
13,800 Documentum, Inc.<F1> 547
5,115 eBay, Inc.<F1> 230
71,000 Electronic Arts, Inc.<F1> 3,115
25,000 Electronic Data Systems Corp. 830
8,750 Entrust Technologies, Inc.<F1> 130
12,575 Genesys Telecommunications
Laboratories, Inc.<F1> 233
11,000 HBO & Co. 318
3,480 Inktomi Corp.<F1> 262
65,000 Intuit, Inc.<F1> 3,027
22,375 J.D. Edwards & Co.<F1> 1,074
70,000 Lycos, Inc. 2,367
60,000 Mentor Graphics Corp.<F1> 416
42,500 Microsoft Corp.<F1> 4,678
10,000 MicroStrategy, Inc.<F1> 375
75,168 Netscape Communications Corp.<F1> 1,644
111,380 Oracle Corp.<F1> 3,244
90,000 Parametric Technology Corp.<F1> 906
NUMBER
OF SHARES VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
COMPUTER SOFTWARE AND SERVICES - 34.4% (CONT'D.)
68,800 PeopleSoft, Inc.<F1> $ 2,245
24,206 Siebel Systems, Inc.<F1> 694
10,000 Sterling Commerce, Inc.<F1> 346
20,000 Synopsys, Inc.<F1> 666
55,000 Yahoo! Inc.<F1> 7,123
----------
46,813
----------
COMPUTER SYSTEMS - 16.9%
125,400 Compaq Computer Corp. 3,966
148,000 Dell Computer Corp.<F1> 9,731
40,000 Hewlett-Packard Co. 2,118
27,500 International Business Machines Corp. 3,520
74,000 Sun Microsystems, Inc.<F1> 3,686
----------
23,021
----------
DATA PROCESSING - 3.2%
40,000 Automatic Data Processing, Inc. 2,990
55,000 First Data Corp. 1,292
----------
4,282
----------
ELECTRICAL AND ELECTRONIC
COMPONENTS - 15.5%
66,700 Applied Materials, Inc.<F1> 1,684
10,000 Etec Systems, Inc.<F1> 261
39,000 Intel Corp. 3,344
15,925 KLA-Tencor Corp.<F1> 396
55,425 Linear Technology Corp. 2,771
12,600 Maxim Integrated Products, Inc.<F1> 351
32,400 Motorola, Inc. 1,383
15,000 Photronics, Inc.<F1> 191
18,000 PMC-Sierra, Inc.<F1> 574
16,000 Sanmina Corp.<F1> 450
15,000 SCI Systems, Inc.<F1> 404
54,800 Solectron Corp.<F1> 2,630
27,600 STMicroelectronics N.V.<F1> 1,240
50,900 Texas Instruments, Inc. 2,685
78,000 Xilinx, Inc.<F1> 2,730
----------
21,094
----------
MEDICAL PRODUCTS AND
PHARMACEUTICALS - 1.0%
12,000 Arterial Vascular Engineering, Inc.<F1> 444
50,000 Cambridge Heart, Inc.<F1> 294
10,000 Novoste Corp.<F1> 129
1,600 QIAGEN N.V.<F1> 87
20,000 Ventana Medical Systems, Inc.<F1> 360
----------
1,314
----------
See Notes to the Financial Statements.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
SCHEDULES OF INVESTMENTS SEPTEMBER 30, 1998 (UNAUDITED)
TECHNOLOGY FUND (continued)
PRINCIPAL
AMOUNT VALUE
(000S) (000S)
- ---------------------------------------------------------------------------
Total Common Stocks
(cost $114,536) $131,560
----------
SHORT-TERM INVESTMENT - 5.0%
$6,809 Berliner Handels und Frankfurter,
5.938%, 10/1/98
(cost $6,809) 6,809
----------
Total Investments - 101.8%
(cost $121,345) 138,369
Liabilities less Other Assets - (1.8)% (2,432)
----------
NET ASSETS - 100.0% $ 135,937
==========
See Notes to the Financial Statements.
<PAGE>
- ---------------------
NOTES TO THE
FINANCIAL STATEMENTS
SEPTEMBER 30, 1998 (UNAUDITED)
1. ORGANIZATION
Northern Funds was organized October 12, 1993 as a Massachusetts business trust
and is registered under the Investment Company Act of 1940 as an open-end
management investment company. The Money Market, U.S. Government Money Market,
U.S. Government Select Money Market, Municipal Money Market, California
Municipal Money Market, U.S. Government, Intermediate Tax-Exempt, Florida
Intermediate Tax-Exempt, Fixed Income, Tax-Exempt, California Tax-Exempt,
International Fixed Income, Income Equity, Stock Index, Growth Equity, Select
Equity, Mid Cap Growth, Small Cap, International Growth Equity, Internation-al
Select Equity and Technology Funds (collectively the "Funds") are separate,
diversified investment portfolios of Northern Funds, except the California
Municipal Money Market, Florida Intermediate Tax-Exempt, California Tax-Exempt
and International Fixed Income Funds which are non-diversified portfolios of
Northern Funds. Non-diversified portfolios may invest a relatively high
percentage of their net assets in obligations of a limited number of issuers.
Each of the Funds maintains its own investment objective.
The Funds have entered into an Investment Advisory Agreement with The
Northern Trust Company ("Northern Trust" or the "Adviser"). Effective April 1,
1998, Northern Trust Quantitative Advisors, Inc., a wholly-owned subsidiary of
Northern Trust Corporation, became the investment adviser for the Stock Index
and Small Cap Funds. Northern Trust also serves as custodian, fund accountant
and transfer agent for the Funds.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds. These policies are in conformity with generally accepted
accounting principles ("GAAP"). The preparation of financial statements in
conformity with GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
A VALUATION OF SECURITIES - Short-term investments held by the Funds are
valued using the amortized cost method, which approximates market value.
Under this method, investments purchased at a discount or premium are
valued by amortizing the difference between the original purchase price and
maturity value of the issue over the period to maturity. Securities which
are traded on a recognized U.S. or foreign securities exchange are
generally valued at the last quoted sales price on the securities exchange
on which the securities are primarily traded. If securities traded on a
foreign securities exchange are not traded on a valuation date, they will
be valued at the most recent quoted sales price. Securities that are
traded in the U.S. over-the-counter markets, absent a last quoted sales
price, are valued at the last quoted bid price. Securities which are
traded in the foreign over-the-counter markets are generally valued at the
last sales price. Guaranteed investment contracts are valued at cost plus
accrued interest, which approximates market value. Any securities for
which no current quotations are readily available are valued at fair value
as determined in good faith by the Adviser under the supervision of the
Board of Trustees.
B REPURCHASE AGREEMENTS - During the term of a repurchase agreement, the
market value of the underlying collateral, including accrued interest, is
required to equal or exceed the market value of the repurchase agreement.
The underlying collateral for all repurchase agreements is held in a
customer-only account of Northern Trust, as custodian for the Funds, at the
Federal Reserve Bank of Chicago.
C FUTURES CONTRACTS - Certain Funds may enter into long financial futures
contracts to maintain liquidity or short financial futures contracts for
hedging purposes. These Funds may also enter into futures contracts for
speculative purposes. Futures contracts are valued based upon their quoted
daily settlement prices; changes in initial settlement value are accounted
for as unrealized appreciation (depreciation) until the contracts are
terminated at which time realized gains and losses are recognized.
A Fund bears the market risk arising from changes in the value of
these financial instruments. At the time a Fund enters into a futures
contract, it is required to make a margin deposit in a segregated account
of a specified amount of cash or eligible securities. Subsequently, as the
market price of the futures contract fluctuates, gains and losses are
recognized and payments are made, on a daily
<PAGE>
NORTHERN FUNDS Semi-Annual Report
basis, between the Fund and the broker. The Statements of Operations
reflect gains and losses as realized for closed futures contracts and as
unrealized for open contracts. At September 30, 1998, the Stock Index,
Growth Equity and Small Cap Funds had entered into exchange-traded futures
contracts. The aggregate market value of securities pledged to cover
margin requirements for open positions at September 30, 1998 was
approximately $375,000, $758,000 and $395,000, for the Stock Index, Growth
Equity and Small Cap Funds, respectively.
D STRIPPED SECURITIES - Stripped securities represent the right to receive
future interest payments (interest only stripped securities) or principal
payments (principal only stripped securities). The value of variable rate
interest only stripped securities varies directly with changes in interest
rates, while the value of fixed rate interest only stripped securities and
the value of principal only stripped securities vary inversely with changes
in interest rates.
E FOREIGN CURRENCY TRANSLATIONS - Values of investments denominated in
foreign currencies are converted into U.S. dollars using the spot market
rate of exchange at the time of valuation. Purchases and sales of
investments and dividend income are translated into U.S. dollars using the
spot market rate of exchange prevailing on the respective dates of such
transactions. The gains or losses on investments resulting from changes in
foreign exchange rates are included with net realized and unrealized gains
(losses) on investments.
F FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS - Certain Funds are authorized
to enter into forward foreign currency exchange contracts for the purchase
of a specific foreign currency at a fixed price on a future date as a hedge
against either specific transactions or portfolio positions, or as a cross-
hedge transaction or for speculative purposes. The objective of a Fund's
foreign currency hedging transactions is to reduce the risk that the U.S.
dollar value of a Fund's foreign currency denominated securities will
decline in value due to changes in foreign currency exchange rates. All
forward foreign currency contracts are "marked-to-market" daily at the
applicable translation rates and any resulting unrealized gains or losses
are recorded in a Fund's financial statements. A Fund records realized
gains or losses at the time the forward contract is offset by entering into
a closing transaction or extinguished by delivery of the currency. Risks
may arise upon entering into these contracts from the potential inability
of counterparties to meet the terms of their contracts and from
unanticipated movements in the value of a foreign currency relative to the
U.S. dollar. The contractual amounts of forward foreign currency exchange
contracts do not necessarily represent the amounts potentially subject to
risk. The measurement of the risks associated with these instruments is
meaningful only when all related and offsetting transactions are
considered.
At September 30, 1998, there were no outstanding contracts.
G ORGANIZATION COSTS - Organization expenses of approximately $1,030,000 have
been deferred and are being amortized on a straight-line basis through
1999.
H INVESTMENT TRANSACTIONS AND INCOME - Investment transactions are recorded
as of the trade date. The Funds determine the gain or loss realized from
investment transactions by using an identified cost basis method. Dividend
income is recognized on the ex-dividend date and interest income is
recognized on an accrual basis and includes amortization of discounts and
premiums. Dividends from foreign securities are recorded on ex-date, or as
soon as the information is available.
I EXPENSES - The Funds are charged for those expenses that are directly
attributable to each Fund. Expenses that are not directly attributable to
a Fund are typically allocated among the Funds in proportion to their
respective net assets.
<PAGE>
J Distributions to Shareholders - Dividends from net investment income are
declared and paid as follows:
DECLARATION PAYMENT
FREQUENCY FREQUENCY
- ------------------------------------------------------------------------
Money Market Daily Monthly
U.S. Government Money
Market Daily Monthly
U.S. Government Select
Money Market Daily Monthly
Municipal Money Market Daily Monthly
California Municipal
Money Market Daily Monthly
U.S. Government Daily Monthly
Intermediate Tax-Exempt Daily Monthly
Florida Intermediate
Tax-Exempt Daily Monthly
Fixed Income Daily Monthly
Tax-Exempt Daily Monthly
California Tax-Exempt Daily Monthly
International Fixed Income Quarterly Quarterly
Income Equity Monthly Monthly
Stock Index Quarterly Quarterly
Growth Equity Quarterly Quarterly
Select Equity Annually Annually
Mid Cap Growth Quarterly Quarterly
Small Cap Annually Annually
International Growth
Equity Annually Annually
International Select
Equity Annually Annually
Technology Annually Annually
- --------------------------------------------------------------------------
Prior to September 27, 1997, dividends from net investment income of the
International Fixed Income Fund were declared daily and paid quarterly.
Distributions of net realized capital gains, if any, are declared at least
annually. Distributions to shareholders are recorded on the ex-dividend date.
The timing and character of distributions determined in accordance with
federal income tax regulations may differ from financial statement amounts
determined in accordance with generally accepted accounting principles due to
differences in the treatment and recognition of investment income and realized
gains (losses). These differences are primarily related to foreign currency
transactions, deferral of wash sales and capital loss carryforwards. Certain
differences in treatment of income and capital gains for distributions, which
are permanent, may result in periodic reclassifications in the Funds' capital
accounts.
K FEDERAL INCOME TAXES - No provision for federal income taxes has been made
since the Funds intend to comply with the requirements of the Internal
Revenue Code available to regulated investment companies.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
3. INVESTMENT ADVISORY AND OTHER AGREEMENTS
Pursuant to its advisory agreement with the Funds, the Adviser is entitled to
receive a fee, calculated daily and payable monthly, at the annual rates
presented below as applied to each Fund's daily net assets. For the six months
ended September 30, 1998, the Adviser voluntarily agreed to waive a portion of
its advisory fees as applied to each Fund's daily net assets as shown on the
accompanying Statements of Operations. Northern Trust had also agreed to
reimburse the Funds as shown on the accompanying Statements of Operations to
adhere to the expense limitations presented in the following table:
ANNUAL ADVISORY
ADVISORY FEES AFTER EXPENSE
FEES WAIVERS LIMITATIONS
- -------------------------------------------------------------------------
Money Market 0.60% 0.40% 0.55%
U.S. Government
Money Market 0.60% 0.40% 0.55%
U.S. Government Select
Money Market 0.60% 0.40% 0.55%
Municipal Money
Market 0.60% 0.40% 0.55%
California Municipal
Money Market 0.60% 0.40% 0.55%
U.S. Government 0.75% 0.75% 0.90%
Intermediate Tax-
Exempt 0.75% 0.70% 0.85%
Florida Intermediate
Tax-Exempt 0.75% 0.70% 0.85%
Fixed Income 0.75% 0.75% 0.90%
Tax-Exempt 0.75% 0.70% 0.85%
California Tax-Exempt 0.75% 0.70% 0.85%
International Fixed
Income 0.90% 0.90% 1.15%
Income Equity 1.00% 0.85% 1.00%
Stock Index 0.60% 0.40% 0.55%
Growth Equity 1.00% 0.85% 1.00%
Select Equity 1.20% 0.85% 1.00%
Mid Cap Growth 1.00% 0.85% 1.00%
Small Cap 1.20% 0.85% 1.00%
International Growth
Equity 1.20% 1.00% 1.25%
International Select
Equity 1.20% 1.00% 1.25%
Technology 1.20% 1.00% 1.25%
For the periods April 1, 1997 to September 30, 1997 and November 3, 1997 to
December 31, 1997, the annual advisory fees, advisory fees after waivers and
expense limitations for the U.S. Government Select Money Market and California
Municipal Money Market Funds were as follows:
ANNUAL ADVISORY
ADVISORY FEES AFTER EXPENSE
FEES WAIVERS LIMITATIONS
- ---------------------------------------------------------------------------
U.S. Government Select
Money Market 0.60% 0.25% 0.40%
California Municipal
Money Market 0.60% 0.30% 0.45%
- ---------------------------------------------------------------------------
The Funds have entered into an administrative agreement with Sunstone
Financial Group, Inc. ("Sunstone") for certain administrative services.
Pursuant to its administrative agreement with the Funds, Sunstone is entitled to
receive a fee, computed daily and payable monthly, at the annual rate of 0.15%
of each Fund's daily net assets. For the six months ended September 30, 1998,
Sunstone voluntarily agreed to waive a portion of its administration fees as
shown on the accompanying Statements of Operations. The waivers and
reimbursements of Northern Trust and Sunstone described above are voluntary and
may be terminated by them at any time at their discretion.
4. BANK LOANS
The Funds maintain a $5,000,000 revolving bank credit line for liquidity and
other purposes. Borrowings under this arrangement bear interest at 1% above the
Fed Funds rate and are secured by pledged securities equal to or exceeding 120%
of the outstanding balance.
As of September 30, 1998, there were no outstanding borrowings.
<PAGE>
5. INVESTMENT TRANSACTIONS
The aggregate purchases and sales of securities, excluding short-term
investments, for the Funds for the six months ended September 30, 1998 were as
follows:
PURCHASES SALES
-----------------------------------------
U.S. U.S.
AMOUNTS IN THOUSANDS GOVERNMENT OTHER GOVERNMENT OTHER
- -------------------------------------------------------------------------------
U.S. Government $176,193 $ - $154,571 $ -
Intermediate Tax-Exempt - 121,131 - 96,693
Florida Intermediate Tax-Exempt - 8,443 - 7,384
Fixed Income 69,800 68,619 63,241 21,866
Tax-Exempt - 113,207 - 81,765
California Tax-Exempt - 31,778 - 12,336
International Fixed Income - 624 - 1,195
Income Equity - 39,388 - 43,422
Stock Index - 23,560 - 1,041
Growth Equity - 121,727 - 113,582
Select Equity - 71,919 - 62,143
Mid Cap Growth - 44,549 - 17,939
Small Cap - 14,738 - 23,847
International Growth Equity - 143,272 - 133,757
International Select Equity - 86,806 - 86,344
Technology - 49,481 - 23,044
- -------------------------------------------------------------------------------
At September 30, 1998, gross unrealized appreciation, gross unrealized
depreciation, net unrealized appreciation (depreciation) on investments
(including the effects of foreign currency translation) and cost basis of
securities were approximately as follows:
<TABLE>
<CAPTION>
NET COST
UNREALIZED UNREALIZED APPRECIATION BASIS OF
AMOUNTS IN THOUSANDS APPRECIATION DEPRECIATION (DEPRECIATION) SECURITIES
- --------------------------------------------------------------------------------------------
<C> <C> <C> <C>
U.S. Government $8,837 $14 $8,823 $248,500
Intermediate Tax-Exempt 11,472 3 11,469 307,458
Florida Intermediate Tax-Exempt 865 2 863 25,297
Fixed Income 10,605 1,919 8,686 218,267
Tax-Exempt 10,876 - 10,876 192,409
California Tax-Exempt 2,680 47 2,633 58,012
International Fixed Income 1,248 399 849 14,252
Income Equity 9,420 7,402 2,018 104,249
Stock Index 15,265 7,130 8,135 99,423
Growth Equity 111,151 22,890 88,261 384,385
Select Equity 22,507 7,038 15,469 113,738
Mid Cap Growth 1,461 2,873 (1,412) 25,105
Small Cap 56,839 54,282 2,557 276,181
International Growth Equity 14,147 13,006 1,141 168,069
International Select Equity 13,263 7,366 5,897 102,558
Technology 29,490 12,466 17,024 121,345
- --------------------------------------------------------------------------------------------
</TABLE>
At March 31, 1998, the California Municipal Money Market and International
Select Equity Funds had capital loss carryforwards, for income tax purposes, of
approximately $1,000 and $4,964,000, respectively, due to expire March 31, 2006.
These capital loss carryforwards are available to offset future gains.
<PAGE>
NORTHERN FUNDS Semi-Annual Report
6. CAPITAL SHARE TRANSACTIONS
NET
REINVESTMENT INCREASE
AMOUNTS IN THOUSANDS SOLD OF DIVIDENDS REDEEMED (DECREASE)
- ----------------------------------------------------------------------------
U.S. Government 4,145 45 2,102 2,088
Intermediate Tax-Exempt 3,085 35 1,322 1,798
Florida Intermediate Tax-Exempt 360 11 304 67
Fixed Income 7,829 77 3,618 4,288
Tax-Exempt 3,584 20 1,327 2,277
California Tax-Exempt 2,437 18 692 1,763
International Fixed Income 128 1 71 58
Income Equity 991 21 779 233
Stock Index 3,288 18 1,769 1,537
Growth Equity 2,788 2 1,667 1,123
Select Equity 1,383 - 814 569
Mid Cap Growth 2,834 - 61 2,773
Small Cap 2,606 - 2,827 (221)
International Growth Equity 2,891 - 1,974 917
International Select Equity 1,095 - 1,120 (25)
Technology 2,407 - 736 1,671
- ----------------------------------------------------------------------------
Transactions of shares of the Funds for the six months ended September 30, 1998
were as follows:
NET
REINVESTMENT INCREASE
AMOUNTS IN THOUSANDS SOLD OF DIVIDENDS REDEEMED (DECREASE)
- ----------------------------------------------------------------------------
U.S. Government 6,618 74 2,623 4,069
Intermediate Tax-Exempt 6,360 64 3,898 2,526
Florida Intermediate Tax-Exempt 1,465 14 536 943
Fixed Income 7,837 110 2,908 5,039
Tax-Exempt 3,720 126 1,584 2,262
California Tax-Exempt 4,132 12 433 3,711
International Fixed Income 200 23 465 (242)
Income Equity 2,329 613 955 1,987
Stock Index 5,376 201 2,666 2,911
Growth Equity 5,044 2,265 3,266 4,043
Select Equity 2,762 603 1,136 2,229
Small Cap 8,480 908 3,399 5,989
International Growth Equity 2,240 466 3,929 (1,223)
International Select Equity 1,429 38 2,583 (1,116)
Technology 3,074 322 956 2,440
- ----------------------------------------------------------------------------
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<PAGE>
This report has been prepared for the general information of Northern Funds
shareholders. It is not authorized for distribution to prospective investors
unless accompanied or preceded by a current Northern Funds prospectus, which
contains more complete information about Northern Funds investment policies,
management fees and expenses. Investors are reminded to read the prospectus
carefully before investing or sending money.
(logo)
Northern Funds
P.O. Box 2081
Milwaukee, WI 53201-2081
1-800-595-9111
NF4100998
BULK RATE
U.S.POSTAGE
PAID
PERMIT NO. 240
PALATINE, P&DC, IL
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